Analyze the following cash flow statement excerpt for Company ABC for the year ended December 31, 2023: Net income: $120,000 Depreciation expense: $30,000 Increase in accounts receivable: $15,000 Decrease in accounts payable: $10,000 Gain on sale of equipment: $5,000 Using the indirect method, how much cash flow from operating activities should be reported?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Calculating Cash Flow from Operating Activities

Very Hard Financial Statements Cash Flow Statement

Analyze the following cash flow statement excerpt for Company ABC for the year ended December 31, 2023:

Using the indirect method, how much cash flow from operating activities should be reported?

Cash flow from operating activities is $120,000.

Cash flow from operating activities is $130,000.

Cash flow from operating activities is $110,000.

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