FSA SFO question equipment, following, principal

franzino

An analyst gathered the following information.
Net Sales  $ 4,000
Dividends Declared  170
Cost of goods sold  2,000
Other cash expenses for inputs  500
Longterm debt principal repayment  250
Cash tax payments  200
Purchase of new equipment  300
Inventroy increased by  100
Accounts payable increased  300
Depreciation expense  75
The company’s cash flow from operations is:
A $1,200
B 1,500
C 1,405
D 1,575
I can’t come up to the right answer… If you know it, please help.

Mechanic

CFO using the direct method:
Step 1: Revenues (4000)
+/ Decrease(increase) in accounts receivables (0, no information)
=Cash collected from customers
Step 2: +Cash investment income (0, no information)
Step 3: COGS (2000)
+/ Increase(decrease) in inventory (100)
+/ Decrease(increase) in accounts payable (+300)
=Cash paid to suppliers
Step 4: Salaries and wags expense(0, no information)
+/ Decrease(increase) in wages payable(0, no information)
= Cash paid to employees(0, no information)
Step 5: Other operating expenses (500)
+/ Increase(decrease) in prepaid expenses(0, no information)
+/ Decrease(increase) in accrued liabilities (0, no information)
= Cash paid for other operating expenses
Step 6:  Cash paid for interest (0, no information)
Step 7: Cash paid for income taxes (200)
= CFO=40002000500100+300200=1500
Is it B?

whew1110

Calculate the amount of Purchases first.
Purchases = COGS + Increase in inventory
Purchases = 2,000 + 100 = 2,100
Now calculate how much was actually paid for the inventory in cash versus how much was purchased on credit
Cash paid to suppliers = Purchases  Increase in payables
= 2,100  300 = 1,800
Now take net sales and subtract any expense that affects cash flow from operations (ignore noncash expenses like depreciation and items that affect cash flow from financing)
= Net sales  cash paid to suppliers  other cash expenses for inputs  cash tax payments
= 4,000  1,800  500  200 = $1,500
Someone please verify this?