CFA Practice Question

CFA Practice Question

You are given the following information for a firm ($ million):

Balances at year end 20X1 20X0
Cash 53 45
A/C Receivable 59 55
Inventory 42 45
A/C Payable 59 63
Accrued Interest Payable 14 12
Retained Earnings 270 219

In 20X1 the firm had gain on sale of property of 25, paid dividends of 20, and depreciation expense of 31. The Net Income for the firm for 20X1 is:
A. 69
B. 71
C. 96
Explanation: NI = Increase in Retained Earnings + Dividends

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