单选题 A company reported the following for the year: Net sales $ 500 Increase in accounts receivable 20 Decrease in accounts payable 40 Increase in inventory 30 Sale of new common stock 100 Repayment of debt 10 Depreciation 2 Net income 100 Interest expense on debt 5 The company's cash flow from operations(CFO) and cash flow from investing(CFI) are closest to ; CFO CFI ①A. $12 $100 ②B. $12 $0 ③C. $92 $100

A、

A. ①
B、

B. ②
C、

C.③

【正确答案】 B

【答案解析】Because net income is given, this problem involves using the indirect method. Net income + $100 Noncash items: depreciation + 2 Change in accounts receivable -20 Change in inventory -30 Change in accounts payable {{U}}-40{{/U}} CFO {{U}}$12{{/U}} The interest expense is ignored because it is already deducted before net income is calculated. Ignore sales for the same reason; net income incorporates sales. Investing cash flows include buying and selling equipment and land. This problem does not involve any such cash flows.