- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 20. Understanding Cash Flow Statements
- Subject 2. Preparing the Cash Flow Statement
CFA Practice Question
Assume GAAP.
Retirement of common stock: 13
Cash payments to merchandise suppliers: 95
Sale of equipment: 35
Payment of dividends: 39
Purchase of land: 9
Cash payment for salaries: 38
Cash collections from customers: 276
Purchase of equipment: 44
Cash payments for interest: 15
Retirement of common stock: 13
Cash payments to merchandise suppliers: 95
Sale of equipment: 35
Payment of dividends: 39
Purchase of land: 9
Cash payment for salaries: 38
Cash collections from customers: 276
Purchase of equipment: 44
What are cash flows from operating activities?
A. 128
B. 318
C. 158
Explanation: Cash flows from operating activities are:
Collections - payments to suppliers - salaries - interest payments = (276 - 95 - 38 - 15) = 128
Collections - payments to suppliers - salaries - interest payments = (276 - 95 - 38 - 15) = 128
User Contributed Comments 0
You need to log in first to add your comment.