collection from customers $5000 depreciation $800 cash expenses including taxes $2000 tax rate 30% net cash incresed by $1000 if inventory increases over the period by $800, CFO is…
Why is this Corporate finance. CFO = 1000 + 800 - 800
sorry, it is FSA…it just that the question is under FSA AND CF…and I just wrote the first part of the title… the answer is 3000…dont know why
Tricky. CFO = 5k - 2k = 3k weird question i think.
yes, very weird
5,000-2,000 = 3,000 ignore the change in inventory because these are the actual cash transaction that don’t need adjustment…“collection from customers” and “cash expense”… if it were “sales” then there would be a cash adjustment required.
I guess the 800 you spent in buying the inventory are already substracted in the $2000 cash expenses
since there was no information on COGS, you do not consider the change in inventory…