Undercarriage, Inc.’s cash flow from operations (CFO) in 20X1 was $23 million after Undercarriage paid $16 million in 20X1 to acquire a franchise which it capitalized and amortized over 4 years. Ignoring tax effects, if Undercarriage had expensed the franchise cost in 20X1, CFO in 20X1 would have been: A) $11 million. B) $39 million. C) $7 million. D) $35 million.
Should CFO be 23 + 16/4 - 16 = 11 million, or 23-16 = 7 million? | 
发表于 2008-12-4 10:24
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