Financial Reporting and Analysis Q164
164The following information is available for HTC Corporation.
| Income Statement Extract | 2012 | 2011 |
| Operating income | $14 million | $12 million |
| Depreciation | $5 million | $3 million |
| Net income | $9 million | $7 million |
| Balance Sheet Extract | 2012 | 2011 |
| Current Assets | $8 million | $6 million |
| Current Liabilities | $10 million | $12 million |
The total adjustment in order to compute operating cash flow is closest to:
- Option : B
- Explanation :
Add depreciation $5 million Subtract increase in current assets ($2 million) Subtract decrease in current liabilities ($2 million) Total adjustment $1 million
