Swans Machinery Plc Reported a Net Profit of £3 000

question 49

Multiple Choice

Swans Machinery Plc reported a net profit of £3 000 000 for the year ended 30 June 2014.The following changes occurred in the statement of financial position: $$\begin{array} { | l | r | } \hline & \begin{array} { c } \text { Increase } \\\text { (decrease) }\end{array} \\\hline \text { Equipment } & 250000 \\\hline \text { Accumulated depreciation } & 400000 \\\hline \text { Note payable } & 300000 \\\hline\end{array}$$ Additional information:
During the year Swans Plc sold equipment with a cost of £250 000 and had accumulated depreciation of £120 000 for a gain of £50 000.
On 30 June 2014 Swans Plc purchased equipment costing £500 000 with £200 000 in cash and a note payable for £300 000.
Depreciation expense for the year was £520 000
What is the amount of net cash from operating activities and net cash used in investing activities respectively for the year ended 30 June 2014?

• A)£3 470 000; (£20 000)
• B)£3 520 000; (£20 000)
• C)£3 470 000; (£200 000)
• D)$3 520 000; ($500 000)

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Definitions:

Environmental Stimuli

Physical or sensory events that occur outside of an organism but which influence its behavior or responses.

Guthrie

Edwin Ray Guthrie, a behaviorist psychologist known for his "contiguity theory" which emphasized that learning occurs through association of stimuli occurring together in time.

Associated Response

A reaction that is commonly linked or connected to a specific trigger or set of conditions.

Secondary Reward

A reward that does not satisfy a biological need but is desirable due to its association with primary rewards or intrinsic satisfaction.