The firm reduced its net working capital investment

Assignment Help Financial Management

Reference no: EM132068555

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,425,000, $145,000 in the common stock account, and $2,700,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,630,000, $155,000 in the common stock account, and $3,000,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $96,500 and the company paid out $150,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $1,010,000, and the firm reduced its net working capital investment by $130,000.

What was the firm's 2016 operating cash flow, or OCF?

Reference no: EM132068555

Questions Cloud

What is the company target debt equity ratio : If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt equity ratio?

What is the internal rate of return for this project : What is the payback period for this project? What is the internal rate of return (IRR) for this project?

True about downward sloping yield curve : Which of the following is most likely to be TRUE about a downward sloping yield curve?

According to the capital asset pricing model : According to the capital asset pricing model (CAPM), fairly priced securities should have _______

The firm reduced its net working capital investment : The firm’s net capital spending for 2016 was $1,010,000, and the firm reduced its net working capital investment by $130,000.

Numerical outline with subcategories to complete assignment : Use a numerical outline with subcategories to complete this assignment.

Some diversification benefits can be achieved : Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is

About this bonds price next year : If interest rates do not change over the year, which of the following is true about this bonds price next year?

How important are laws to protect the prosperity of business : How important are laws to protect the prosperity of businesses? How important are laws to protect society from the unintended costs of business?

User Account

All Pages