The Following Information Is Provided for Identikit Ltd for the Period

question 61

Multiple Choice

The following information is provided for Identikit Ltd for the period ended 30 June 2015:
$$\begin{array} { | l | r | } \hline & \$ 0 \\\hline \text { Cost of goods sold for the year } & 460 \\\hline \text { Discounts received for early payment to suppliers } & 40 \\\hline \text { Opening balance of trade creditors } & 100 \\\hline \text { Closing balance of trade creditors } & 120 \\\hline \text { Opening balance of inventory } & 78 \\\hline \text { Closing balance of inventory } & 160 \\\hline \text { Sales for the year } & 1200 \\\hline \text { Discounts provided to customers for early payment } & 120 \\\hline \text { Sales returns } & 120 \\\hline \text { Opening balance of accounts receivable } & 300 \\\hline \text { Closing balance of accounts receivable } & 270 \\\hline \text { Bad debts expense } & 65 \\\hline \text { Opening balance of tax payable } & 60 \\\hline \text { Closing balance of tax payable } & 30 \\\hline \text { Tax expense } & 15 \\\hline \text { Interest expense } & 27 \\\hline \text { Dividends paid } & 73 \\\hline\end{array}$$
All transactions are in cash unless otherwise indicated.What is the net cash flow from operating activities for the period?

• A) Cash inflow $371 000
• B) Cash inflow $298 000
• C) Cash outflow $554 000
• D) Cash inflow $530 000

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Definitions:

Semiannual Amortization

The process of gradually writing off the initial cost of an asset over a period, with adjustments made twice a year.

Amortization

The gradual reduction of a debt over a period of time through regular payments, which cover interest and principal.

Interest Expense

The cost incurred by an entity for borrowed funds, typically noted on the income statement as a non-operating expense.

Issued

Refers to securities, such as stocks or bonds, that have been made available for sale and have been purchased by investors.