An analyst gathered the following data about a company Net sales 4,000 Div Declared 170 COGS 2,000 Other cash exp for inputs 500 long term debt principal repayment 250 cash tax payment 200 purchase of new equipment 300 inven inc by 100 A/P inc 300 Dep exp 75 the companys cash flow from operations is a. $1,200 b. $1,500 c. $1,405 d. $1,575
2000-500-200-100+300=1500 B
B it is. Cash Collections = 4000 Cash Inputs = -COGS - Inv Increase + Increase in A/P = -2000 - 100 + 300 = -1800 Cash Expenses = -500 Cash Interest = 0 Cash Taxes = -200 CFO = 4000 - 1800 - 500 - 200 = 1500.