问题
单项选择题
Train, Inc.’s cash flow from operations (CFO) in 2004 was $14 million. Train paid $8 million cash to acquire a franchise at the beginning of 2004 that was expensed in 2004. If Train had elected to amortize the cost of the franchise over eight years, 2004 cash flow from operations (CFO) would have been:
A．
| A. $ 22 million. |
B．
| B. $ 21 million. |
C．
| C. $ 7 million. |
答案
参考答案：A
解析：If Train decided to amortize the franchise cost, it would be capitalized and $1 million each year would be treated as a reduction in cash flow from investing (CFI). None of the cash expended would flow though CFO, and all of the $ 8 million would be added back to CFO.