Use the Following Information to Answer Questions
a Company

question 20

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 financing activities?

• A) £38 000 net cash inflow;
• B) £40,000 net cash inflow;
• C) £42,000 net cash inflow;
• D) £(2000) net cash outflow.

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