Swans Machinery Ltd Reported a Net Profit of $3 000

question 8

Multiple Choice

Swans Machinery Ltd 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 Ltd 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 Ltd 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:

Zinacanteco

Pertaining to the Zinacantán, an indigenous Maya community in the state of Chiapas, Mexico, known for their traditional textiles and rituals.

Social Position

An individual's place or status within a social hierarchy, which can be determined by factors like wealth, occupation, education, and social network.

Newborn

Refers to an infant in the very first weeks of life, typically considered to be the period up to 28 days after birth.

Inches Long

A unit of measurement used to describe the length of an object, with one inch equaling approximately 2.54 centimeters.