CFAI Mock Exam PM Session Q49. (Computation of CFO) accounting, principles, statements, following

MythosHF

Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
The following information is from a company’s 2008 financial statements ($ millions):
Balances as of the year ended 31 December 2008 2007
Retained earnings 140 120
Accounts receivable 43 38
Inventory 48 45
Accounts payable 29 36
In 2008 the company declared and paid cash dividends of $5 million and recorded
depreciation expense in the amount of $25 million. The company’s 2008 cash
flow from operations ($ millions) is closest to:
A. 25.
B. 30.
C. 35.