Sadler plc made an operating profit of £175,500 after charging depreciation of £21,200. During that year, trade receivables increased by £16,600 and inventory increased by £30,300. There was no change to trade payables. Assuming that no other factors affected it, the cash generated from operations would have been:
Sadler plc made an operating profit of £175,500 after charging depreciation of £21,200. During that year, trade receivables increased by £16,600 and inventory increased by £30,300. There was no change to trade payables. Assuming that no other factors affected it, the cash generated from operations would have been:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sadler ple made an operating profit of £175,500 after charging depreciation of £21,200.
During that year, trade receivables increased by £16,600 and inventory increased by
£30,300. There was no change to trade payables. Assuming that no other factors affected it,
the cash generated from operations would have been:
Select one:
O a. £107,400
o b. £149,800
O c. £243,600
o d. £183,000
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