A Company Reported the Following Information for a Financial Year

question 12

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 from operating activities?

• A) $166 000.
• B) $222 000.
• C) $236 000.
• D) $292 000.

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Definitions:

Day-to-day Operation

The regular, routine activities carried out by a business to ensure its smooth functioning and success.

Employee Evaluation

The process of assessing the performance and productivity of employees, usually involving feedback and discussions to improve future performance.

Compensation System

A structured plan designed to provide monetary and non-monetary benefits to employees as reward for their work contribution and performance.

Informal Controls

Unwritten, cultural guidelines and norms that influence employee behavior and organizational performance, complementing formal policies.