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CFA Level 1
Financial Reporting and Analysis

Cash Flow from Operating Activities Calculation

Hard Financial Statements Cash Flow Statement

In a recent financial analysis of Company XYZ, the CFO reported the following information derived from the company’s financial statements:

- Net Income: $1,500,000

- Depreciation Expense: $300,000

- Increase in Accounts Receivable: $200,000

- Increase in Accounts Payable: $150,000

- Capital Expenditures (CapEx): $500,000

Given this information, calculate the cash flow from operating activities using the direct method, and identify how this cash flow would impact the overall cash flow statement.

Hint

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