单选题
Based on the following data to answer
A company had the following changes in its balance sheet accounts:
An increase in accounts receivable $ 50
A decrease in accounts payable $ 40
An increase in inventory $ 60
Sale of common stock $150
Repayment of debt $ 20
Depreciation $10
Net Income $ 700
单选题 The company's cash flow from operations is:
【正确答案】 C
【答案解析】By using indirect method: CFO: Net Income +700 Non cash items: depreciation +10 Change in accounts receivable (50) Change in inventory (60) Chang in accounts payable (40) Sum 560
单选题 The company's cash flow from investing is:
【正确答案】 A
【答案解析】Investing cash flows include buying and selling equipment and land. This problem does not involve any such cash flows.
单选题 The company's cash flow from financing is:
【正确答案】 B
【答案解析】Sale of common stock