Lars Limited Draws Up Its Statement of Cash Flows Using

question 26

Multiple Choice

Lars Limited draws up its statement of cash flows using the direct method. The company presents you with the following figures:
$\begin{array}{lr}& £ \\\text { Purchases for the year to } 31 \text { May } 2019 & 375,000 \\\text { Trade payables at } 31 \text { May } 2019 & 42,650 \\\text { Discounts received for the year to } 31 \text { May } 2019 & 6,250 \\\text { Trade payables at } 31 \text { May } 2018 & 44,815 \\\text { Purchase returns for the year to } 31 \text { May 2019 } & 22,500\end{array}$ What was the cash paid to suppliers during the financial year to 31 May 2019?

• A) £344,085
• B) £348,415
• C) £356,585
• D) £360,915

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Definitions:

Cohesion

The force that holds molecules of the same substance together (e.g., water molecules to each other).

Dehydration Synthesis

A chemical reaction that binds molecules together with the loss of a water molecule.

Hydrogen Bond

A weak bond between two molecules resulting from an electrostatic attraction between a proton in one molecule and an electronegative atom in the other.

Polar Covalent

A type of chemical bond where two atoms share a pair of electrons unequally, resulting in a molecule with electrically charged poles.