Penketh Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging depreciation of £2,500, exceptional expenses of £5,000 and making a profit on the disposal of a machine of £2,000. The balance sheet shows the following changes over the year: Trade receivables: increase by £2,500 Inventories: increase by £2,700 Trade payables: decrease by £3,000 What is the net cash from operating activities? a) £25,900 b) £13,200 c) £28,400 d) £18,700

Penketh Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging depreciation of £2,500, exceptional expenses of £5,000 and making a profit on the disposal of a machine of £2,000. The balance sheet shows the following changes over the year: Trade receivables: increase by £2,500 Inventories: increase by £2,700 Trade payables: decrease by £3,000 What is the net cash from operating activities? a) £25,900 b) £13,200 c) £28,400 d) £18,700

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Oak Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging depreciation of £2,500, exceptional expenses of £5,000 and making a profit on the disposal of a machine of £2,000. The balance sheet shows the following changes over the year:Trade receivables: increase by £2,500Inventories: increase by £2,700Trade payables: decrease by £3,000What is the net cash from operating activities?a) £25,900b) £13,200c) £28,400d) £18,700
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