Question: Lucent Technology is considering seller-finance for an existing customer with the following information. The net income is $100MM. The depreciation cost is $15MM. What is
Lucent Technology is considering seller-finance for an existing customer with the following information. The net income is $100MM. The depreciation cost is $15MM. What is the subject firm's cash flow from operations (CFO)?
| Decrease in accounts receivable | $30 MM |
| Issuance of new stocks | 17 |
| Proceeds from the sale of fixed assets | 5 |
| Decrease in inventory | 17 |
| Increase in accounts payable | 10 |
| Dividends paid out | 35 |
| Decrease in wages payable | 10 |
a. $147
b. $157
c. $137
d. $167
e. $162
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