During the Year, Penso Ltd Received $50 000 from Its

question 33

Multiple Choice

During the year, Penso Ltd received $50 000 from its customers, $5 000 for the sale of a motor vehicle and $20 000 for the issue of shares. It paid $27 000 to suppliers and employees, $3 000 for income tax and $50 000 for new machinery. In addition, it paid out $12 000 to redeem bonds. Its cash balance at the commencement of the year was $22 000. What were the cash flows from investing activities?

• A) $8 000
• B) $45 000
• C) ($45 000)
• D) ($48 000)

---

Definitions:

International Projects

Ventures or operations undertaken by businesses or organizations that involve cross-border investments and activities.

Market Segmentation

A marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them.

Gilts

British and Irish government securities, including issues of local British authorities and some overseas public-sector offerings.

Government Securities

Financial instruments issued by the government to raise funds from the public, including bonds, notes, and bills, generally considered low-risk investments.