Calculate the Net Cash Flow from Operating Activities by Adjusting

question 56

Multiple Choice

Calculate the net cash flow from operating activities by adjusting the operating profit after tax.
$\begin{array}{lr}\text { After-tax profit for the year } & \$ 50000 \\ \text { Depreciation } & 8000 \\ \text { Decrease in accounts receivable } & 22000 \\ \text { Decrease in accounts payable } & 13000\end{array}$

• A) $15 000
• B) $41 000
• C) $59 000
• D) $65 000

Appreciate the necessity of establishing a baseline before implementing interventions.

Understand the impact of inventory on both the balance sheet and cost of goods sold and the dual role it plays in organizations.

Gain knowledge on various inventory management models, including EOQ, JIT, and MRP systems, and their underlying philosophies.

Learn the principles of the square-root rule and how inventory needs change with the number of stocking locations.

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Definitions:

Mutually Exclusive

Situations or events that cannot occur at the same time, indicating a choice must be made between them.

Required Rate of Return

Rephrased: The minimum percentage of profit or interest an investor expects from an investment to consider it worthwhile, factoring in the risk involved.

NPV

Net Present Value represents the discrepancy between the current value of cash inflows and outflows throughout a specific timeframe, utilized in capital budgeting to evaluate an investment's profitability.

PI

Profitability Index (PI) is a ratio that calculates the relationship between the benefits of a project or investment and its costs, helping to determine its attractiveness.