The firm reduced its net working capital investment

Assignment Help Financial Management
Reference no: EM131492191

The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $3 million in long-term debt, $770,000 in the common stock account, and $6.15 million in the additional paid-in surplus account. The 2009 balance sheet showed $3.8 million, $965,000, and $8 million in the same three accounts, respectively. The 2009 income statement showed an interest expense of $280,000. The company paid out $560,000 in cash dividends during 2009. If the firm's net capital spending for 2009 was $680,000, and the firm reduced its net working capital investment by $185,000, the firm's 2009 operating cash flow, or OCF?

A $-2,005,000

B $-2,630,000

C $2,375,000

D $-1,510,000

E $-3,620,000

Reference no: EM131492191

Questions Cloud

Write an argumentative essay based on the issue : Write an argumentative essay based on the issue as reported in the newspaper article UKM, UiTM to kickstart Gap Year programme in September, says
Equipment agree with the general ledger : Auditors must confirm that the __________ of Property, Plant, and Equipment agree with the general ledger.
How has evolution of internet piloted growth of e-contracts : we have explored the surge of e-commerce and the escalation of online contracts. How has the evolution of the internet piloted the growth of e-contracts?
Your realized return is known as the holding period yield : If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).
The firm reduced its net working capital investment : If the firm's net capital spending for 2009 was $680,000, and the firm reduced its net working capital investment by $185,000, firm's 2009 operating cash flow.
Design the setup of your it infrastructure : Design the setup of your IT infrastructure and make sure that you can justify how it will " prevent"/detect external as well as internal threads.
Assess the challenges related to using the earnings : Assess the challenges related to using the earnings-based valuation method in practice, suggesting how each of these challenges may be overcome.
Determine how firms valuation using the earnings : Determine how a firm’s valuation using the earnings-based valuation method would be impacted when using aggressive versus conservative accounting.
What is the elements of trade sales promotion : What is the Elements of trade sales promotion (push) strategy mean? What is the Elements of consumer sales promotion (pull) strategy mean?

Reviews

Write a Review

Financial Management Questions & Answers

  Reward-to-risk ratios for stocks

Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of .7 and an expected return of 9.1 percent. If the risk-free rate is 5.4 percent and the market risk premium is 6.4 percent, the reward-to-risk ratios for stocks Y ..

  What is the total return of your stock investment

You bought a share of Butler Imports stock for $45.60 at the beginning of the year. During the year the stock paid a $2.25 dividend and at the end of the year it trades at $54.75. What is the total return of your stock investment?

  What is the bid premium being offered

High plc has an historic PER of 22 and Low plc has an historic PER of 12. Both companies have 100 million shares in issue and produced earnings of £20m in the last financial year. High has offered three of its share for every five held by Low's share..

  Compute the effective cost of the loan

The lender also charges a front-end loan origination fee on this loan of $100,000.-  Compute the effective cost of this loan.

  What is marys effective annual rate

Mary purchased 100 shares of Sweet Pea Co. stock at a price of $43.96 six months ago. She sold all stocks today for $43.36. During that period the stock paid dividends of $2.82 per share. What is Mary’s effective annual rate?

  What is the value of the investment today

An investment offers $9,900 per year for 13 years, with the first payment occurring one year from now. What is the value of the investment today?

  Cost of Common Equity with Flotation

Ballack Co.’s common stock currently sells for $49.00 per share. The growth rate is a constant 11.2%, and the company has an expected dividend yield of 6%. The expected long-run dividend payout ratio is 20%, and the expected return on equity (ROE) is..

  Management contract with its newly hired president

The Great Giant Corp. has a management contract with its newly hired president. The contract requires a lump sum payment of $25,300,000 be paid to the president upon the completion of her first 6 years of service.

  Make semiannual payments

Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 7 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly rise by 5 percent, Bond J will decrease in price by (Percent)..

  Describe moral hazard costs of coverage for contact lenses

Describe the consumption-smoothing benefits and moral hazard costs of coverage for contact lenses, prescription drugs, and accidents and acute illnesses.

  How much does marie have to pay

Marie incurred total charges by a hospital of $20,000, and the percentage paid to the provider is 70%. Marie's contract with the PPO specifies her co-pay as 20%. How much does Marie have to pay?

  Using the residual income valuation approach

Why is it appropriate to use the required rate of return on equity capital as the discount rate when using the residual income valuation approach?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd