Answer:
$1,271,000
Explanation:
Calculation for What was the firm’s 2020 operating cash flow, or OCF
First step is to calculate the Cash flow from assets using this formula
Cash flow from assets=Cash flow to creditors + Cash flow to stockholders
Let plug in the formula
Cash flow from assets=–$60,000 + $70,000
Cash flow from assets = $10,000
Now let calculate the operating cash flow using this formula
Operating cash flow=Cash flow from assets-Reduction in Net working capital investment+Net capital spending
Let plug in the formula
Operating cash flow=$10,000-$59,000+$1,320,000
Operating cash flow=$1,271,000
Therefore the firm’s 2020 operating cash flow, or OCF will be $1,271,000
