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Sagot :
The firm's 2018 operating cash flow, or OCF is -$2,219,500
How do we determine the operating cash flow?
The operating cash flow can be determined from the cash flows from assets formula where cash flow from assets is the operating cash flow minus net capital spending and net change in working capital
cash flow from assets=operating cash flow-net capital spending+ net increase in working capital
Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Stockholders
Cash Flow to Creditors = Interest Expense - Net New Long-term Debt
Cash Flow to Creditors=$200,000-($3,900,000-$2,200,000)
cash flow to creditors=$200,000-$1700,000
cash flow to creditors=-$1,500,000
Cash Flow to Stockholders = Dividends - Net New Equity
cash flow to stockholders=$610,000-($905,000+$8,400,000-$710,000-$6,400,000)
cash flow to stockholders=-$1,585,000
Cash Flow from Assets =-$1,500,000-$1,585,000
Cash Flow from Assets =-$3,085,000
operating cash flow=unknown(assume it is x)
net capital spending=$850,000
net increase in working capital=$155,000
-$3,085,000=x-$850,00-$155,000
x=-$3,085,000+$850,000+$155,000
x=OCF=-$2,219,500
Find out more about OCF on:brainly.com/question/14127626
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