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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Penketh Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging
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
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