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

question 2

Multiple Choice

From the following information,calculate the cash flow from operating activities:
$$\begin{array} { l c } \text { Net Income } & 80,000 \\\text { Depreciation } & 15,000 \\\text { Increase in accounts receivable } & 5,000 \\\text { Decrease in accounts payable } & 5,000 \\\text { Increase in inventory } & 5,000\end{array}$$

• A) £80,000 net cash inflow
• B) £70,000 net cash inflow
• C) £75,000 net cash inflow
• D) £110,000 net cash inflow

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Definitions:

Profit Maximization

A business's objective to achieve the highest possible profits through the management of revenues and costs, often through adjusting price, output, and production efficiency.

All-Natural Ice Cream

Ice cream made using only natural ingredients, without artificial flavors, colors, or preservatives.

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand dynamics.

Short Run

A period in which at least one factor of production is fixed and cannot be altered, limiting the immediate operational changes a business can make.