strikethree

kys916 wrote:
BTW I can answer 38… High level thinking. NI is the earnings for accounting method (Earnings/Share = NI/Share). The physical cashflow we get is CFO from operations plus CFI = your cash earning for the period (Don’t need to worry about financing, since getting money from stock isn’t really earning). Therefore if the ratio is negative (NI -CFO - CFi)/(NOAaverage), then it means cash earnings (CFO+CFI) is greating than accounting earnings (NI)
I entirely agree with your logic there. However the Cash Flow accruals ratio was +ve in 2010, which is the period the question is asking about. Therefore accounting earnings  cash earnings and A is not the correct answer.