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!

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.

A CFA Level 1 Discussion About CFA Level1 Financial Analysis Section, Understanding Cashflow Statements

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This topic has 2 replies, 2 voices, and was last updated Jun-217:32 am by chen2196.

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- Zee Tan
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  - CFA Charterholder
  04 Jun 2021 at 9:04 pm
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  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.
  - chen2196
    Participant
    
    CFA Level 1
    05 Jun 2021 at 7:32 am
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    thank you very much!
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