单选题
An analyst gathers the following information:
Net
income
$100
Decrease in
accounts receivable 30
Depreciation
25
Increase in inventory
17
Increase in
accounts payable
10
Decrease in wages payable
5
Increase in
deferred taxes
17
Sale of fixed assets
150
Purchase of fixed assets
340
Profit from the
sale of fixed assets 5
Dividends paid out
35
Sale of new common
stock
120
Based on the above information, the company's cash flow
from operations is:
- A. $155.
- B. $165.
- C. $175.
【正确答案】
A
【答案解析】Net income + 100
Adjustment for noncash and nonoperating items
Depreciation + 25
Deferred taxes (increase) + 17
Profit from sale of equipment -5
Adjustment for working capital items:
Accounts receivable ( decrease + 30
Inventory (increase) 17
Accounts payable (increase) + 10
Wages payable (decrease) 5
Cash flow from operations + $155
Dividends paid are CFF, not CFO.