Find the operating cash flow of the firm

Assignment Help Finance Basics
Reference no: EM131924094

Question: The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.55 million in long-term debt, $740,000 in the common stock account, and $6.05 million in the additional paid-in surplus account. The 2009 balance sheet showed $3.85 million, $905,000, and $8.55 million in the same three accounts, respectively. The 2009 income statement showed an interest expense of $210,000. The company paid out $650,000 in cash dividends during 2009. If the firm's net capital spending for 2009 was $740,000, and the firm reduced its net working capital investment by $145,000, the firm's 2009 operating cash flow, or OCF?

Reference no: EM131924094

Questions Cloud

Formulate the present value of the annuity : A 20-year annuity pays $1,800 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly.
What portion is allocated to net intangible assets : we completed our acquisition of privately held Fotolia, leading marketplace for royalty-free photos, images. what portion is allocated to net intangible assets?
What was the amount of the original load : A 20 year mortgage set up for uniform monthly payments with 6 percent interest compounded monthly is taken over by a new owner after 8years.
What is the stock current price per share : What is the stock's current price per share (before the recapitalization)? what will be its stock price following the recapitalization?
Find the operating cash flow of the firm : The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.55 million in long-term debt, $740,000 in the common stock account, and $6.05 million.
What is investor willing to pay for bond : If the bonds pay interest payments semi-annually what is an investor willing to pay for the bond?
Evaluate the firm cash flow to creditors : The 2014 balance sheet o(Sugar ova's Tennis Shop, Inc.. showed long-term debt of $5.2 million, and the 2015 balance sheet showed long-term debt of $5.4 million.
Analyzing and interpreting equity method investments : What amount does Concord report on its balance sheet for its investment in Bloomingdale?
Calculate rate of return on equity for each firm : Calculate the return on invested capital (ROIC) for each firm. Calculate the rate of return on equity (ROE) for each firm.

Reviews

Write a Review

Finance Basics Questions & Answers

  Sections of introductory statistics

Exam grades across all sections of introductory statistics at a large university are approximately normally distributed with a mean of and a standard deviation of. Use the normal distribution to answer the following questions.

  Compute the price of the call

Using the Black-Scholes formula, compute the price of the call. The price of the call is $. (Round to two decimal places.) Use put-call parity to compute the price of the put with the same strike and expiration date.The price of the put is $. (Roun..

  When you complete your team decision activity as a team

when you complete your team decision activity as a team analyzing your teams previous and current decisions and your

  Compute the average age to date of depreciable assets in use

Compute the average total depreciable life of assets in use for each firm. Compute the average age to date of depreciable assets in use for each firm at the end of the year. Compute the amount of depreciation expense recognized for tax purposes for e..

  The bonds mature in 5 years and their current market value

commonwealth company has 100 bonds outstanding maturity value 1000. the required rate of return on these bonds is

  Analyze and interpret a listed company financial information

Problem- Analyze And Interpret A Listed Company's Financial Information. It is often assumed by unsophisticated readers of financial statements that the data included isprepared on a purely objective basis

  Compute current share price of a company

West Coast Oil Discovery (WCOD) just paid a dividend of $4 on its stock. The growth rate of the dividends is expected to be a constant 8 percent per year indefinitely.

  Economic forecasts by economists and financial experts

Analyze the current economic forecasts by economists and financial experts, and predict the impact on the interest rate term structure.

  Discuss what mutual funds are and why people invest in them

Discuss what mutual funds are and why people invest in them? Are they safe? Why or why not? Explain.

  What is the expected commission based on making calls

A stockbroker calls on potential clients from referrals. For each call, there is a 10% chance that the client will decide to invest with the firm. Fifty-five percent of those interested are found not to be qualified, based on the brokerage firm's ..

  Question regarding the playing the float

Playing the float. Clay Travel, Inc. routinely funds its checking account to cover all checks when written. A thorough analysis of its checking account discloses that the firm could maintain an average account balance that is 25% below the curre..

  Explain scale and impact of financial crisis in economies

FIN200 Assignment, T1 2016. Explain the scale and impact of financial crisis in economies of different countries including your own country, identify some of proposed reforms

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd