Ardea Limited Draws Up Its Statement of Cash Flows Using

question 19

Multiple Choice

Ardea Limited draws up its statement of cash flows using the direct method. The company presents the following balances in its financial statements for the years ended 31 May 2019 and 31 May 2018:
$\begin{array}{lcc} & 2019 & 2018 \\& £ & £ \\\text { Cost of sales } & 765,239 & 721,488 \\\text { Inventory at 31 May } & 79,368 & 82,415 \\\text { Trade payables at 31 May } & 99,221 & 101,911\end{array}$ Based on these figures, how much cash was paid to suppliers (trade payables) during the financial year ended 31 May 2019?

• A) £764,882
• B) £765,596
• C) £767,929
• D) £770,976

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Definitions:

Poles

In electrical engineering, refers to the individual magnetic poles (north and south) of a magnet, or the points in a motor or generator where magnetic lines of force enter and exit.

Three-Phase Motor

A type of induction motor that operates on three-phase alternating current, known for its efficiency and consistent torque delivery.

Magnetic Field

A region around a magnetic material or moving electric charge within which the force of magnetism acts.

Synchronous Speed

The speed of the rotating magnetic field of an AC induction motor.