The 2020 balance sheet of Osaka’s Tennis Shop, Incorporated, showed long-term debt of $2.25 million, and the 2021 balance sheet showed long-term debt of $2.66 million. The 2021 income statement showed an interest expense of $305,000. During 2021, Osaka’s Tennis Shop, Incorporated, realized the following:
Cash flow to creditors –$ 105,000
Cash flow to stockholders $ 209,000
Suppose you also know that the firm’s net capital spending for 2021 was $1.5 million and that the firm reduced its net working capital investment by $55,000.
What was the firm’s 2021 operating cash flow, or OCF?
Answers
Answer:
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Explanation:
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Answer:
Cash flow of Tennis Shop, Incorporated, realized the following:
Cash flow to creditors
Explanation:
operating coins float (OCF) is a degree of the amount of cash generated by means of a business enterprise's normal commercial enterprise operations. operating cash waft suggests whether or not a company can generate enough fantastic coins flow to maintain and develop its operations, otherwise, it could require external financing for capital growth.
operating coins flow is an critical benchmark to determine the monetary success of a business enterprise's center enterprise sports.
operating cash flow is the primary phase depicted on a cash go with the flow announcement, which additionally consists of coins from making an investment and financing sports.
There are two techniques for depicting working coins waft on a coins waft statement—the indirect method and the direct technique.
The indirect technique starts offevolved with internet income from the income announcement then provides returned non-coins items to arrive at a coins foundation figure.
The direct technique tracks all transactions in a period on a cash basis and makes use of actual cash inflows and outflows at the coins float statement.
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