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Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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An analyst gathers the following year-end information from a company's financial statements:

Year 2:

  • Accounts receivable: €3 million
  • Accounts payable: €2 million

Year 1:

  • Accounts receivable: €1 million
  • Accounts payable: €5 million

Given that Year 2 net income is €3 million and the Year 1 ending cash balance is €10 million, what is the Year 2 ending cash balance?

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