Question

Given the information for Whelan, Inc., in Problems 10 and 11, suppose you also know that the firm’s net capital spending for 2019 was $745,000 and that the firm reduced its net working capital investment by $94,300. What was the firm’s 2019 operating cash flow, or OCF? Ross, Stephen. Essentials of Corporate Finance (p. 44). McGraw-Hill Higher Education. Kindle Edition.

Answer 1

$94,300

Step-by-step explanation:

Note: Problem 10 and 11 is attached as picture

Information that falls under the 3 Cash flows is indicated below as this question is concerned

Operating Cash Flow - Reduction in Net Working Cash Flow.

Investing Cash Flow - Capital Spend comes

Financing Cash Flow- Interest payment, Capital surplus, Dividend payment and Debt.

The question requires the calculation of The firm's 2019 Operating cash flow. Reduction in net cash flow increases the Operating cash flow for the company. Thus, the Operating Cash Flows = $94,300