AICPA BEC Prac Exam Help

This topic contains 1 reply, has 2 voices, and was last updated by  chandler 2 months, 1 week ago.

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  • #2397558

    will
    Participant

    I need help figuring out how they got to the answer for Operating cash flow ratio on a sim for the BEC prac. exam. The formula wants CF from operations, how would I find that from just the IS and BS? Feel like I am missing something here. I sit for the real deal tomorrow morning (Last test, freaking out!) Wish me luck!

    Took my last Becker ME 3 test yesterday and got a 81%. I am hoping that is a good sign. Normally I spend the last day before my exams relaxing and not overdoing it, but this question is driving me crazy.

    #2398755

    chandler
    Participant

    Will,

    Here, it's helpful if you'll post the question as they change these from time to time. I went to pull the practice exam to help you out though.
    Cash flow from operations is given/stated in the problem. The formula for operating cash flow ratio is given in the bank loan covenant excerpt.
    You simply divide cash flow from operations ($2,050,000) by current liabilities in the statement of financial position (5,320,000) to get .39

    Hope this helps!

    Chandler Priest

    Licensed TX CPA

    REG 01/27/18 - 98

    BEC 03/03/18 - 96

    AUD 04/07/18 - 91

    FAR 06/02/18 -96

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