Here\'s the question: The December 31, 2015, balance sheet of Schism, Inc., show
ID: 2811030 • Letter: H
Question
Here's the question: 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.
I already can solve the first 3 questions, however, I cannot find the firm's operating cash flow. Note: The answer is NOT -871,500, I've already tried that.
What was the firm's cash flow to creditors during 2016?
Answer: -108500
What was the firm’s cash flow to stockholders during 2016?
Answer: -160000
What was the firm’s cash flow from assets during 2016?
Answer: -268500
What was the firm’s operating cash flow during 2016?
Answer: ?
Any help is appreciated, thanks!
Explanation / Answer
Cash flow from assets = Operating cash flow - Capital spending - Additions to net working capital
- 268,500 = Operating cash flow - 1,010,000 - (- 130,000)
Operating cash flow = - 268,500 + 1,010,000 - 130,000
= $611,500
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