A Company Reported the Following Information for a Financial Year

question 13

Multiple Choice

A company reported the following information for a financial year: $\begin{array}{lr}\text { Profit from ordinary activities before incometax expense } & 264000 \\\text { Income tax expense } & 70000 \\\text { Depreciation expense } & 24000 \\\text { Issue of shares } & 120000 \\\text { Loan made to another company } & 24000 \\\text { Increase in accounts receivable } & 8000 \\\text { Decrease in inventories } & 12000 \\\text { Cash received from loans receivable } & 4000 \\\text { Dividends paid } & 16000\end{array}$ What is the net cash inflow (outflow) from investing activities?

• A) $4 000 net cash inflow.
• B) $24 000 net cash inflow.
• C) $(20 000) net cash outflow.
• D) $(24 000) net cash outflow.

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Definitions:

Stand-Up Comic

A performer who tells jokes and humorous stories to an audience, usually performing live on stage.

Assembly Line Worker

An individual employed in a manufacturing process where a product is assembled in a sequential manner using a conveyance or other mechanism to move items from workstation to workstation.

CPI

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

Real Wages

Income from work, recalibrated to account for the cost of living changes, indicating the real value of earnings.