Using the Following Information,calculate the Cash Flow from Operating Activities

question 16

Multiple Choice

Using the following information,calculate the cash flow from operating activities:
Cash from trade receivables £80,000,cash sales £30,000; depreciation expense £3,000; rent paid £2,000

• A) £105,000 net cash inflow from operating activities
• B) £110,000 net cash inflow from operating activities
• C) £108,000 net cash inflow from operating activities
• D) £110,000 net cash outflow from operating activities

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Definitions:

Incremental Sales

The additional revenue generated from a particular business action or decision, beyond what would have been generated without it.

Operating Expenses

Expenses incurred through normal business operations, such as rent, utilities, and salaries.

Renovation Cost

The total expenses incurred in refurbishing and restoring a building or facility to either improve it or bring it back to its original condition.

After-Tax Discount Rate

This is the discount rate that has been adjusted to reflect the impact of taxes on a project's cash flow.