1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna35 [415]
4 years ago
15

The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $6.3 million, and the 2018 balance sheet showed l

ong-term debt of $6.5 million. The 2018 income statement showed an interest expense of $220,000. During 2018, the company had a cash flow to creditors of $20,000 and the cash flow to stockholders for the year was $75,000. Suppose you also know that the firm’s net capital spending for 2018 was $1,480,000, and that the firm reduced its net working capital investment by $91,000.What was the firm's 2018 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars
Business
1 answer:
dsp734 years ago
3 0

Answer:

The firm's operating cash flow is $291000

Explanation:

Operating cash flow is arrived by using the format below:

Net income after tax                

Add back dereciation and amortization

Add and (deduct) Reduction in working capital(Increase in working capital)

Add back interest expense on loans

Add back tax expense for the year

Then deduct:

Actual interest paid

Actual tax paid

Using the proforma above,Kerber's Tennis Shop Inc. is shown as:

Net income after  tax+Interest expense(add)+reduction in net working capital(add)-increase in creditors' payment(minus)

As a result,operating cash flow=$220000+$91000-$20000

                                                    =$291000

You might be interested in
Match the following:
alexira [117]

Answer:

The match is as follow

1. Posting   ⇒   E. Copying data from the journal to the ledger

2. Expense  ⇒ A. The cost of operating a business; a decrease in stockholders' equity

3. Debit      ⇒  K. Left side of an account

4. Trial Balance   ⇒  L. The book of accounts and their balances

5. Equity    ⇒  F. Assets - Liabilities

6. Net Income  ⇒  G. Revenues - Expenses

7. Receivable  ⇒ B. Always an asset

8. Chart of Accounts  ⇒ H. Lists all accounts with their balances

9. Payable   ⇒ I. Always a liability

10. Journal    ⇒  D. Lists a company's accounts and account numbers (no account balances in this item)

11. Normal Balance  ⇒ C. Side of an account where increases are recorded

12. Ledger   ⇒    J. Record of transactions

4 0
3 years ago
Smoke detection systems are perhaps the most common means of detecting a potentially dangerous fire, and they are required by bu
DENIUS [597]

Answer:

Correct. This is exactly what I think as well.

3 0
3 years ago
Companies can run the same marketing communications programs as used in the home market or change them for each local market, a
nlexa [21]
Answer:  "communication adaptation" .
________________________________________
7 0
4 years ago
I need help please?? 20 points
Alexxandr [17]

A supervisor is the person who leads the team and will be responsible for determining how performance of staff is measured. It is important to be consistent in setting up and administering the reviews so that:

  1. Employees understand what is expected of them: if all employees with the same job have different goals, they will not understand their role and how to do their best work
  2. Supervisors will not know how to measure performance if there is not a consistent standard
  3. Quality control: when you have consistent and standard performance reviews, employees will know what they need to do. Therefore, when an employee is not performing like they need to be the supervisor can easily point to the standards that need to be met and the ways that the employee is not meeting those standards
4 0
4 years ago
Sandra Robinson is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she
Luden [163]

Answer:

Sandra will deposit $  18,197.75

Explanation:

It need to obtain 26,000 dollars in five years.

She will invest at 7.20 annual compounding quarterly.

We need to know to calculate the lump sum Sandra needs to deposit today.

We use present value of a lump sum formula:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $26,000

time   20 (five years x 4 quarters per year)

rate  0.018 (7.2 / 4 quarter per year)

\frac{26000}{(1 + 0.018)^{20} } = PV  

PV   18,197.75

8 0
3 years ago
Other questions:
  • Which of the following is not an example of macro economics
    9·1 answer
  • Melissa works in the fashion industry. Her job is to research, by analyzing social media, the growing trends among youth. Her co
    13·1 answer
  • Wolfpack Construction has the following account balances at the end of the year.
    15·1 answer
  • Which of the following combinations include only services? a a health consult, prescription medication, and kickboxing lessons b
    7·2 answers
  • Grant’s manager just told his team about this year’s contest, the winner of which will receive an all-expense paid trip to Taiwa
    13·1 answer
  • When you walk into a business and decide that you might want the job but then you really see what the people do and your like i
    11·1 answer
  • Tate Corporation purchased a building for its grocery store for $30,000 in 1970.Based on inflation estimates,the amount of this
    7·1 answer
  • A listing of all possible returns on an investment, with a chance of occurrence assigned to each return is known as _____.
    13·1 answer
  • Jim is an accountant who reimburses travel expenses for company employees who have used personal funds for travel. Tom, a compan
    12·1 answer
  • Cost-volume-profit analysis can be extended to determine the effect on profit of other changes, such as ______.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!