Detecting Accounting Fraud 1st Edition by Cecil Jackson

Exercise 41

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.