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 |