The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $5.9 million, and the 2021 balance sheet showed long-term debt of $6.1 million. The 2021 income statement showed an interest expense of $200,000. During 2021, the company had a cash flow to creditors of $0 and the cash flow to stockholders for the year was $80,000. Suppose you also know that the firm's net capital spending for 2021 was $1.44 million and that the firm reduced its net working capital investment by $83,000. What was the firm's 2021 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answers

Answer 1

The firm's 2021 operating cash flow (OCF) was $2,314,000.

How to find Operating cash flow?

The firm's 2021 operating cash flow, or OCF, can be calculated using the following formula:

OCF = Net Income + Depreciation - Taxes

To find the net income, we need to calculate the interest paid and taxes first.

Interest paid = Interest expense - Increase in long-term debt
= $200,000 - ($6.1 million - $5.9 million)
= $200,000 - $200,000
= $0

Next, we calculate the taxes using the cash flow to stockholders and net capital spending:

Taxes = Cash Flow to Stockholders - Net Capital Spending + Increase in long-term debt - Decrease in net working capital
= $80,000 - $1.44 million + ($6.1 million - $5.9 million) - (-$83,000)
= $80,000 - $1.44 million + $200,000 + $83,000
= -$1.157 million

Since the taxes result in a negative value, it means the firm had a tax benefit.

Now, we can calculate the net income:

Net Income = Interest paid - Taxes
= $0 - (-$1.157 million)
= $1.157 million

Finally, we can calculate the operating cash flow:

OCF = Net Income + Depreciation - Taxes
= $1.157 million + Depreciation - (-$1.157 million)
= $1.157 million + Depreciation + $1.157 million
= $2.314 million

Therefore, the firm's 2021 operating cash flow (OCF) was $2,314,000.

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Related Questions

Survey researchers design and conduct surveys and analyze data. Some survey researchers design public opinion surveys. Other survey researchers (market research analysts) design marketing surveys which examine products or services that consumers want, need, or prefer. Most survey researchers work in research firms, polling organizations, nonprofits, corporations, colleges and universities, and government agencies. The majority work full time during regular business hours. A bachelor's degree may be sufficient for some entry-level positions. The median annual wage for survey researchers was $49,760 in May, 2014. SOURCE: Bureau of Labor and Statistics, U.S. 준. Surveys for scientific research cover various fields, including government, health, social sciences, and education. For example, a survey researcher may try to capture information about the prevalence of drug use or disease. An anonymous survey of college students was taken to determine behaviors regarding alcohol, cigarettes, and illegal drugs. The results were as follows: 894 drank alcohol regularly 665 smoked cigarettes 192 used illegal drugs 424 drank alcohol regularly and smoked cigarettes 114 drank alcohol regularly and used illegal drugs 119 smoked cigarettes and used illegal drugs 97 engaged in all three behaviors 309 engaged in none of the behaviors Source: Jamie Langille, University of Nevada Las Vegas How many students were surveyed? How many drank alcohol regularly or smoked cigarettes? How many used illegal drugs only? How many drank alcohol regularly and smoked cigarettes, but did not use illegal drugs? How many drank alcohol regularly or used illegal drugs, but did not smoke cigarettes? How many engaged in exactly two of these behaviors? How many engaged in at least one of these behaviors?

Answers

a. The number of students surveyed was 1,000.

b. 1,300 students drank alcohol regularly or smoked cigarettes.

c. 75 students used illegal drugs only.

d. 310 students drank alcohol regularly and smoked cigarettes but did not use illegal drugs.

e. 1,110 students drank alcohol regularly or used illegal drugs but did not smoke cigarettes.

f. 193 students engaged in exactly two of these behaviors.

g. 997 students engaged in at least one of these behaviors.

How many students participated in the survey?

According to the survey results, there were a total of 309 students who engaged in none of the behaviors, and the remaining students fell into various categories. To determine the number of students surveyed, we sum up the frequencies of all behaviors mentioned in the survey results. Therefore, the total number of students surveyed is 1,000. From the provided data, we can calculate the number of students who drank alcohol regularly or smoked cigarettes by adding the frequencies for each behavior individually. Similarly, we can find the number of students who engaged in specific combinations of behaviors, such as using illegal drugs only or drinking alcohol regularly while smoking cigarettes but not using illegal drugs. By analyzing the data, we can answer each of the given questions accurately.

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How much is 6500 Usd in GBP?

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6500 United States Dollars (USD), on converting will be 5418.37 British Pound Sterling (GBP)

The Pound Sterling(GBP) is the money utilized in the United Kingdom, while the US Dollar (USD) is the cash utilized in the US. Transformation rates between various monetary forms change day to day, so checking the ongoing rate prior to making a conversion is significant.

One method for deciding the transformation pace of Pound Sterling to US dollars is to take a gander at the conversion standard, which is the cost at which one cash can be traded for another. This conversion is not entirely set in stone by the organic market, as well as different factors, for example, loan fees and expansion.

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importantance of business

Answers

Answer:

Business is the source of employment. It creates employment opportunities for a large number of people in any country. Various types of employees are required both in management and technical jobs of business. The development of industry and commerce is helping to solve the employment problems of the nation.

Business improves the quality of life in two ways. Firstly, it provides high-quality goods and service to the people required for their enjoyment, comfort, and health. Secondly, a business offers employment opportunities to the people by which they can generate income and improve the quality of life.

Businesses help the society first through the distribution of goods and services which are essential for survival. Furthermore, they create employment opportunities that help individuals within the society earn an income to afford their needs.

Explanation:

rent received Rs. 10,000/-

Answers

Answer:

Okay, but where is the question or it's free points?

Here for points,please ignore me.

Why do you think it is important to have a diverse number of careers to choose from? How would it affect our global economy if there were only one or two career clusters?

Answers

Because if everyone went and had the same job no one else would know how to do the other jobs causing our entire economy to fail and entire city’s failing too.

what is net income and how do you calculate it?

Answers

Answer:

net income is the amount an individual earns after subtracting taxes and other deductions from gross income.

CALCULATION

-----------------------------------------++---------------------

the amount of revenue left after subtracting all expenses, taxes and costs.

Write about the ways to maintain a positive body
image.

What I Should Do to Maintain a Positive Body Image

Answers

Answer:

Eat Healthy

Maintain a good diet

Meditate

Practice self confidence

Work out

Stay positive

Have a healthy mental state

help me please

A _____ is when the government may provide money to banks that are having troubke in order to help them recover.

A. rescue

B. bail-out

C. takeover

D. investment

Answers

Answer:

The correct answer is B. Bail-out.

Explanation:

What is the marginal revenue and marginal cost for this diagram?

What type of market is this? Explain your answer

Answers

Marginal revenue :

2060120200300420560

Marginal cost :

108210192640

It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.

Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.

Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.

Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.

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Throughout the process of establishing its strategy, Acer’s leadership has monitored the strategies of HP and other PC manufacturers to determine the threats and opportunities presented by these competitors. This process is called ________.

A. a threat analysis

B. strategic planning

C. competitive analysis

D. differentiation strategy

E. environmental scanning

Answer:

$245,600

Explanation:

The computation of Total selling expenses is shown below:-

Particulars Calculation Amount

Sales Commissions ($900,000 × 5%) $45,000

Salary expenses $96,000

Advertising expenses $80,000

Shipping expenses ($900,000 × 2%) $18,000

Miscellaneous selling

expenses ($2,100 + 1 ÷ 2 × $6,600

($900,000 × 1%)

Total Sales expenses $245,600

We simply added all the items

Brands such as Keurig, Goya Foods, and Nike will find that activism stances are profitable if the goodwill from a political stand in the long run is greater than the erosion of name and sales in the short run. t/f

Answers

The statement is true. Brands such as Keurig, Goya Foods, and Nike have found that taking a stand on social and political issues can be profitable if it resonates with their customer base.

In recent years, consumers have become increasingly politically aware and are more likely to support brands that align with their values. This trend has led to many companies taking public stances on issues such as climate change, racial justice, and immigration. However, taking a political stance can also be risky for brands as it can alienate some customers and lead to negative publicity. For example, when Nike featured Colin Kaepernick in an ad campaign, some customers burned their Nike products in protest. Goya Foods faced backlash after its CEO praised former President Donald Trump, leading to calls for a boycott of the brand. Despite the risks, many brands are still willing to take a political stand as they believe it can lead to long-term benefits. A survey by Edelman found that 64% of consumers around the world will buy or boycott a brand based on its stance on a social or political issue.

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The Security Market Line defines the required rate of return for a security to be worth buying or holding. The line, depicted in blue in the graph, is the sum of the risk-free return (rf in the slider) and a risk premium determined by the market-risk premium (RPM) multiplied by the security's beta coefficient for risk. Drag the rf slider below the graph to change the amount of the risk-free return. These changes reflect changes in inflation. Drag the RPM slider below the graph to change the relationship between a security's beta coefficient and the amount of the market risk premium. Drag left or right on the graph to move the cursor line to evaluate securities with different beta coefficients. r = r_{RF} + RP_M * beta = 6% + 5% * 1 = 6% + 5.00% = 11.00% r=r RF+RPM∗beta=6%+5%∗1=6%+5.00%=11.00% For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta coefficient of 1.5? 2. Changing the risk-free return (inflation) Changes neither the y-intercept nor the slope of the security market line Changes only the y-intercept of the security market line Changes only the slope of the security market line Changes both the y-intercept and the slope of the security market line 3. Changing the market risk premium Changes neither the y-intercept nor the slope of the security market line Changes only the y-intercept of the security market line Changes only the slope of the security market line Changes both the y-intercept and the slope of the security market line 4. True or False: If a company's beta doubles, its required return doubles.

Answers

The required rate of return for a security with a beta coefficient of 1.5, given a risk-free return rate of 5% and a market risk premium of 6%, is 14%.

1. To calculate the required rate of return for a security with a beta coefficient of 1.5, we can use the formula provided in the question: r = rRF + RPM * beta.

First, let's determine the values for the risk-free return rate (rRF) and the market risk premium (RPM). The risk-free return rate is given as 5% and the market risk premium is given as 6%.

Now, let's substitute these values into the formula:
r = 5% + 6% * 1.5 = 5% + 9% = 14%.

Therefore, the required rate of return for a security with a beta coefficient of 1.5, given a risk-free return rate of 5% and a market risk premium of 6%, is 14%.

2. Changing the risk-free return (inflation) changes only the y-intercept of the security market line. The slope of the security market line represents the market risk premium multiplied by the security's beta coefficient, which remains constant regardless of changes in the risk-free return rate. The y-intercept, on the other hand, represents the risk-free return rate and is directly affected by changes in the risk-free return rate (inflation). Therefore, changing the risk-free return (inflation) only affects the y-intercept of the security market line.

3. Changing the market risk premium changes only the slope of the security market line. The market risk premium represents the additional return investors require for taking on market risk. As the market risk premium changes, the additional return required for each unit of beta coefficient changes, resulting in a change in the slope of the security market line. However, the risk-free return rate remains unaffected, meaning the y-intercept of the security market line remains constant.

4. False. If a company's beta doubles, its required return does not double. The required return for a security is determined by the risk-free return rate and the market risk premium multiplied by the security's beta coefficient. While an increase in beta coefficient will lead to an increase in the required return, it will not result in a doubling of the required return. The increase in required return will depend on the specific relationship between the market risk premium and the beta coefficient.

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what role do non-monetary considerations play in physical capital investment decisions as opposed to human capital investment decisions

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When it comes to physical capital investment decisions, non-monetary considerations play a significant role in the decision-making process. This is because physical capital investments involve

On the other hand, when it comes to human capital investment decisions, non-monetary considerations are also important but to a lesser extent compared to physical capital investments. This is because human capital investments typically involve a different set of factors such as the potential for skill development, employee satisfaction and retention, and the overall impact on the company's culture and values.

In conclusion, non-monetary considerations play a vital role in both physical and human capital investment decisions. However, the types of non-monetary considerations that are most important differ depending on the type of investment.

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Will give brainliest to anyone who can explain how to solve this

Answers

Find the amount of markup by subtracting the store cost from sale price:

25-5 = 20

Divide markup amount by cost:

20/5 = 4

Multiply by 100 to get percentage

4 x 100 = 400 %

The answer is B. 400%

Answer:

Explanation:

The emergence of self-driving cars is an example of ""creative destruction"" because.

Answers

This is because: Self-driving cars will be less expensive to build than current cars.

What is creative destruction?

This term was coined by Joseph Schumpeter. The concept of creative destruction refers to the process of economic innovation, in which some products are replaced by others, or some firms die because they are driven out of the market by others, and so on.

When a company produces a new good that makes the old ones already in the market obsolete, the company is said to be creatively destroying the old goods.

An classical example of creative destruction occurred when Steve Jobs introduced the Iphone in 2007.

Therefore, the emergence of self-driving cars is an example of ""creative destruction"" because self-driving cars will be less expensive to build than current cars

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A drawback involved in using cross-border strategic alliances to enter new foreign markets is that_______

Answers

Utilizing cross-border strategic partnerships to reach new international markets has the disadvantage that some of the company's confidential information may be taken by the foreign partner.

What Constraints apply to Cross-Border Strategic Alliances?The first drawback of cross-border strategic partnerships is that they are challenging to effectively and efficiently manage owing to their complicated and dangerous character.Conflicts frequently occur within multinational alliances, which is the second drawback of cross-border strategic alliances.Cross-border strategic collaborations have the drawback of potentially giving the foreign partner access to some of the company's proprietary information.

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If Delia invests her money in savings and government bonds, which phrase
most likely describes her investment strategy?
A. High risk, low return
B. Low risk, low return
C. Low risk, high return
D. High risk, high return

Answers

By investing in savings and government bonds, Delia is following a B. Low risk, low return investment strategy.

Government bonds and savings accounts:

Have very little risk attached to them because they are either backed by the government or not put into risky investmentsProvide very little return on account of having so little risk

When a person invests in government bonds and savings accounts, they are all but certain that they will get their money back. They will however, not make a lot of return.

We can therefore conclude that Delia is pursuing a low risk and low return strategy.

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Which statement regarding apps is false?

A user can browse for specific apps by name or category
Apps can enhance user experience
Many apps come with a fee
Apps are associated with QuickBooks

Answers

The statement regarding apps is false is the following Apps are associated with QuickBooks.

What is QuickBook?

A quickbook is a software that is used to record the accounting transactions of a company, this software is widely used in companies accounts department.

Apps are not associated with Quickbooks as apps are developed individually and these are not inter-related with the software quickbook.

There are many different types of apps, also there are different types of accounting software, the most widely used software includes oracle, SAP and Quickbooks. All the three software are used in companies and the software can be used by not only Finance department but also other departments of a company.

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If you have a favorable sales volume variance, what must be true?.

Answers

Answer:

higher actual revenue than the standard revenue

Explanation:

one of the keys to following your carrer path is to be _

like honestly i dont need the answer but if you answer it ill give you 15 brainliest bcuz im in a good mood:) the first one to answer will get the brainliests!! good luck

Answers

Answer:

diligent I guess

Explanation:

i don't know just putting a word that sounds *smart*

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