Problem:
The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $6.5 million, and the 2014 balance sheet showed long-term debt of $6.7 million. The 2014 income statement showed an interest expense of $230,000. During 2014, Maria's Tennis Shop, Inc., had a cash flow to creditors of $30,000 and the cash flow to stockholders for the year was $85,000. Suppose you also know that the firm's net capital spending for 2014 was $1,500,000, and that the firm reduced its net working capital investment by $95,000.
Required:
Question 1: What was the firm's 2014 operating cash flow, or OCF?
Explain in detail.