medium · Principles of Finance
A firm has Net Income of 100. Depreciation is 20. It spent 50 on new inventory but only 30 of that was recorded in COGS. It also collected 10 more in cash than it recorded in revenue.
What is CFO?
- 90
- 110
- 130
- 150
Sign up free to see the explanation and track your rank →
More Principles of Finance practice
- Which loan has the higher effective annual rate (EAR)?
- Using the Capital Asset Pricing Model (CAPM), calculate the cost of equity for a firm with
- What is its current market price?
- What is the Multiple of Invested Capital (MOIC) for the equity investors?
- What is its Modified Duration?
- What is the Cash Flow from Operations (CFO)?
- What is the net profit per share for the investor?
- What is its Degree of Financial Leverage (DFL)?