Getting-Harder Has an Operating Profit of £40000 After Charging Depreciation

question 1

Multiple Choice

Getting-Harder has an operating profit of £40000 after charging depreciation of £5000 and has a decrease in inventory of £7000 and an increase in receivables of £3 500. What is its cash flow from operations?

• A) £51000
• B) £48500
• C) £40500
• D) £33500
• E) £36500

---

Definitions:

Financing Activity

Activities that result in changes in the size and composition of the equity capital or borrowings of the entity.

Operating Activity

Transactions and events that are directly involved in the primary operations of a business, such as sales and service revenue, and associated costs.

Change In Cash

The difference in a company's cash balance over a specified period, resulting from its operating, investing, and financing activities.

Stock Market

The stock market is a collection of markets and exchanges where the buying, selling, and issuance of shares of publicly-held companies occur.