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:

Bushels

A unit of volume that is used for measuring quantities of agricultural produce such as grains.

Production Possibilities

Different combinations of goods and services that a society can produce given its available resources and technology.

Average Product

The output per unit of input, calculated by dividing total production by the number of input units.

Labor

The human effort (physical or mental) that is used in the production of goods and services.