Problem:
The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.3 million in long-term debt, $700,000 in the common stock account, and $6.5 million in the additional paid-in surplus account. The 2009 balance sheet showed $4.25 million, $985,000, and $8.7 million in the same three accounts, respectively. The 2009 income statement showed an interest expense of $250,000. The company paid out $550,000 in cash dividends during 2009and the firm's 2009 operating cash flow was $-3,060,000.
Required:
Question: If the firm's net capital spending for 2009 was $740,000, and the firm reduced its net working capital investment by $165,000, what is the firm's cash flow from assets?
- $-3,655,000
- $-4,160,000
- $-5,310,000
- $-3,635,000
- $3,965,000
Note: Provide thorough explanation of every question given in the problem.