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Up16
Hi
Here is an example used in CFA textbook that I don’t understand.
The explanation in the question used the first column(“12/31/2018”) as beginning balance and second column(“12/31/2017”) as ending balance and arrived at the answer B. I don’t understand why it used earlier time as ending balance and later time as beginning balance, aren’t you supposed to go the opposite way? I used first column as ending balance and second column as beginning balance and got the cash received from equipment sale as $22million. Can someone tell me who’s wrong here? Thank you very much!
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Up2
You are correct, the dates of the columns should be swapped. The errata of CFA Level 1 states:
In the table in Example 6 (page 206 of print), the second column heading should be
12/31/2017, and the third column heading should be 12/31/2018.You can find the full errata for CFA Level 1 here.
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