单选题

Convenience Travel Corp.'s financial information for the year ended December 31, 2004 included the following:

Property Plant & Equipment $ 15000000
Accumulated Depreciation $ 9000000

The only asset owned by Convenience Travel in 2005 was a corporate jet airplane. The airplane was being depreciated over a 15-year period on a straight-line basis at a rate of $1000000 per year.
On December 31, 2005 Convenience Travel sold the airplane for $10000000 cash. Net income for the year ended December 31, 2005 was $12000000.
Based on the above information, and ignoring taxes, what is cash flow from operations (CFO) for Convenience Travel for the year ended December 31, 2005?(     )。

【正确答案】 C
【答案解析】

Using the indirect method, CFO is net income increased by 2005 depreciation ($1000000) and decreased by the gain recognized on the sale of the plane [$10000000 sale price-($15000000 original cost-$10000000 accumulated depreciation including 2005)=$5000000].
$12000000+$1000000-$5000000=$8000000.