Page 69 - CFA Lecture Day 8 Slides

Session Unit 7:

26. Understanding Cash Flow Statements (B)

B. Net income = $1,500 × 0.25 = $375,

and cash flow from operations = net
income – gain on sale of machinery +
tanties
depreciation – increase in accounts
receivable – increase in inventory –
decrease in accounts payable = 375 –

30 + 150 – 50 – 100 – 70 = $275.