CFA Practice Question

CFA Practice Question

A firm has a net income of 150, an increase in accounts receivable of 30, depreciation of 55, and a decrease in accounts payable of 25. Its operating cash flow is ______.
A. 210
B. 150
C. 200
Explanation: operating cash flow = net income + noncash expenses - non-cash revenues = 150 + 55 - 30 - 25 = 150

User Contributed Comments 5

User Comment
KD101 Acts recv increase means service is provided so accrued in the Net Income part now we need to take it out for C/F purposes
dealsoutlook why cant more question be this simple :p
kellyyang I agree !
ashish100 Can't believe I messed this one up.
ashish100 CFO = NI + Depreciation - Change in Working Cap
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