The Stancil Corporation provided the following current information:

Proceeds from long-term borrowing

$ 21,000

Proceeds from the sale of common stock

3,480

Purchases of fixed assets

23,740

Purchases of inventories

3,620

Payment of dividends

8,920

Payment of interest

2,700

What was the company's operating cash flow?

**Note: Do not round intermediate calculations.**

To calculate the company's operating cash flow (OCF), we need to focus on the cash generated or used from operations, excluding cash flows related to financing or investing activities. Operating cash flow typically includes revenues and expenses related to the core business operations, such as sales, purchases, and payment of interest, but not proceeds from loans or the sale of stock.

From the information provided:

- **Proceeds from long-term borrowing** and **Proceeds from the sale of common stock** are related to financing activities, so they are not included in operating cash flow.
- **Purchases of fixed assets** are related to investing activities, so this is also not part of the operating cash flow.
- **Payment of dividends** is a financing activity and is not part of the operating cash flow.
- **Purchases of inventories** and **Payment of interest** are part of operating activities.

Thus, we need the purchases of inventories and payment of interest to calculate the operating cash flow. However, we don’t have enough information to calculate the full OCF, since items like revenues, operating expenses (excluding interest), or depreciation aren’t provided.

Would you like to provide more details like revenue, operating expenses, or ask for specific clarifications about the approach? 

Here are some related questions to help expand your understanding:

1. What are the key components needed to calculate operating cash flow?
2. How does interest payment impact operating cash flow?
3. What role do financing and investing activities play in cash flow calculations?
4. Can depreciation affect the operating cash flow?
5. How is free cash flow different from operating cash flow?

**Tip:** The operating cash flow is typically derived from the income statement, focusing on revenues and costs directly related to the main business operations.

The Stancil Corporation provided the following current information:

Proceeds from long-term borrowing: $21,000
Proceeds from the sale of common stock: $3,480
Purchases of fixed assets: $23,740
Purchases of inventories: $3,620
Payment of dividends: $8,920
Payment of interest: $2,700

What was the company's operating cash flow?

**Note: Do not round intermediate calculations.**

Learn how to calculate the operating cash flow for the Stancil Corporation using key financial information such as proceeds, purchases, and interest payments. This problem explores core finance concepts related to operating activities and cash flow analysis, suitable for college-level finance students.

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