Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

CFA Events Calendar

View full calendar

CFA Events Calendar

View full calendar

Recommended Discussions

See how our partners can help you ace your CFA exams.

Question of the Week - Financial Reporting and Analysis

AdaptPrepAdaptPrep Des Moines, IA, USAPosts: 211 Sr Associate
edited June 2015 in Level 1 Questions
DESDES Ventures leased equipment from Varesilicons with a fair market price of $4,000,000. The lease is determined to be a finance lease. Over the first year, DESDES pays Varesilicons $500,000, of which $300,000 is interest on the lease and $200,000 goes towards the value of the equipment. The decrease in DESDES's operating cash flow from this transaction is closest to:

Question of the Week - Financial Reporting and Analysis 47 votes

$200,000
14%
jl4431rhuang2jsmulhollandivThomasjunior77sri12Omidahomie samyakjaroli 7 votes
$300,000
65%
hairyfairyLeChiffreAndrewKokAdaptPrepAKG1593Titan33amar363Stuj79RandallK27ThomasWCFAI_wont_stop_meEQ_ArbitragerdxArsenalFan71hamiltonkomrad.sgstyleKevinbjoshiRisingAlpha 31 votes
$500,000
19%
marianmihaiYannickTTango89Xav2884NasirPicknrollkeerthanaprem1619mao 9 votes

Comments

Sign In or Register to comment.