Examine these extracts from Collin Company’s income statements and statements of cash flow for the previous three years.

You also read in the notes to the financial statements that Collin Company sold $1,000 of its accounts receivable in year 3.
Adjust for the sale of accounts receivable in year 3 and calculate CFFO as a percentage of operating income for years 1–3.

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Income Statement Year 1 Year 2 Year 3 $ $ S Operating income 1,000 1,000 1,000 Statement of Cash Flows Year 1 Year 2 Year 3 $ S $ Cash flow from 1,000 1,000 1,000 operating activities