Charles McKimmon, CFA, is analyzing the financial statements of Computers On Credit, Inc. (COC). COC has sold $60 million of accounts receivable for proceeds of $50 million, and McKimmon wishes to treat the transaction as collateralized borrowing. McKimmon’s financial statement adjustments will most likely include adding.

a. $50 million to accounts receivable.

b. $50 million to cash flows from financing activity.

c. $50 million to cash flows from operating activity.

Answer rating: 100% (QA)

The correct answer is b 50 million to cash flows from financing a... View the full answer