Use the Following Information to Answer Questions
a Company

question 21

Multiple Choice

Use the following information to answer questions
A company reported the following information for a financial year:
£
$\begin{array}{ll}\text {Profit from ordinary activities before income tax expense }&72,000 \\\text {Income tax expense }&20,000 \\\text {Depreciation expense }&8,000 \\\text { Issue of shares}&40,000 \\\text { Loan made to another company}&6,000 \\\text {Increase in trade receivables }&1,000 \\\text { Decrease in inventories}&2,000 \\\text { Cash received from loans receivable}& 4,000\\\text {Dividends paid }&2,000 \\\end{array}$

-What is the net cash inflow (outflow) from investing activities?

• A) £2000 net cash inflow;
• B) £6000 net cash inflow;
• C) £(2000) net cash outflow;
• D) £(4000) net cash outflow.

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Definitions:

Net Pay

The amount of an employee's earnings remaining after all deductions, such as taxes and retirement contributions, have been taken out.

Overtime Rate

The higher pay rate employees earn for hours worked in excess of standard full-time hours.

Weekly Pay

Compensation paid to employees on a weekly basis.

Hourly Rate

The amount of money paid for each hour of work, commonly used for calculating wages of part-time or contract employees.