Pedantic Ltd has operating profit for the year ended 30 June 2020 of £40,300, after charging depreciation of £6,500, amortisation of £2,000 and making a loss on the disposal of a car of £1,000. The balance sheet shows the following changes over the year: Trade receivables: increase by £1,500 Inventories: increase by £1,200  Trade payables: increase by £1,800 What is the net cash from operating activities? a) £49,800 b) £48,900 c) £54,300 d) £50,700

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Pedantic Ltd has operating profit for the year ended 30 June 2020 of £40,300, after charging depreciation of £6,500, amortisation of £2,000 and making a loss on the disposal of a car of £1,000. The balance sheet shows the following changes over the year:

Trade receivables: increase by £1,500

Inventories: increase by £1,200 
Trade payables: increase by £1,800

What is the net cash from operating activities?

a) £49,800

b) £48,900

c) £54,300

d) £50,700

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Forecasting Financial Statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education