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:

Parallel Circuit

A circuit configuration where components are connected across common points or junctions, allowing multiple paths for current flow.

Inductive Reactance

The opposition that inductors present to alternating current, proportional to the frequency of the AC and the inductance, measured in ohms.

Power (P)

In an electrical context, the rate at which electrical energy is transferred by an electric circuit, usually measured in watts.

Parallel Circuit

An electrical circuit where components are connected across common points or junctions, creating multiple paths for current flow.