CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Assume GAAP.

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

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