1. The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $5.5 million, and the 2015 balance sheet showed long-term debt of $5.9 million. The 2015 income statement showed an interest expense of $135,000.
What was the firm’s cash flow to creditors during 2015?
2. The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $6.5 million, and the 2015 balance sheet showed long-term debt of $6.7 million. The 2015 income statement showed an interest expense of $230,000. During 2015, the company 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 2015 was $1,500,000, and that the firm reduced its net working capital investment by $95,000.
What was the firm’s 2015 operating cash flow, or OCF?