[CFA level 1模拟真题]Version 4 Questions－Q32 class, following, statements, principles, accounting

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Q32. Assume U.S.GAAP (generally accepted accounting principles) applies unless otherwise noted.

An analyst gathered the following information from a company’s financial statements ($ millions):

Year ended 31 December	2003	2004
Sales	320.1	322.8
Net income	26.8	27.2
Cash flow from operations	38.1	15.3

Based only on the information above, during 2004 the company most likely decreased the :

A. proportion of sales made on a cash basis.

B. Inventory, anticipating lower demand for its products in 2005.

C. Proportion of interest-bearing debt relative to trade accounts payable.

D. Investment in long-term assets by selling undeveloped land at a substantial loss.

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答案和详解如下：

Q32.  A   07 Modular Level 1, Vol.3,pp.129-135   Study Sessions 7-36-b

Sales, net income, and net margin are relatively constant for the two years. The substantial drop in cash flow from operations could be attributed to an increase in receivables and/or inventory. A decrease in the proportion of cash sales implies an increase in the proportion of credit sales, increasing accounts receivable. An increase in accounts receivable would decrease cash flow from operations.

LEEFEI571

选c

水模样

a

fantasy_ln

see

Linda_SCB

a

jungle1009

see

ondesert

k

technet

a

stonede

kk