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Homework answers / question archive / A company reported the following information for a financial year: Profit from ordinary activities before income tax expense 264 000 Income tax expense70 000 Depreciation expense 24 000 Issue of shares 20 000 Loan made to another company 24 000 Increase in accounts receivable 8 000 Decrease in inventories 12 000 Cash received from loans receivable 4 000 Dividends paid 16 000 What is the net cash inflow (outflow) from financing activities? Select one: a
A company reported the following information for a financial year:
Profit from ordinary activities before income tax expense 264 000
Income tax expense70 000
Depreciation expense 24 000
Issue of shares 20 000
Loan made to another company 24 000
Increase in accounts receivable 8 000
Decrease in inventories 12 000
Cash received from loans receivable 4 000
Dividends paid 16 000
What is the net cash inflow (outflow) from financing activities? Select one:
a. $124 000 net cash inflow.
b. $120 000 net cash inflow
c. $(16 000) net cash outflow.
d. $104 000 net cash inflow.
Solution
Net cash flow from financing activities:
Cash from issue of shares $120,000
Cash paid to dividends -$16,000
Net cash inflow from financing activities = $104,000
Other activities would be classified under operating activities and investing activities section as follows
Operating activities –
Profit from ordinary activities before income tax expense
Income tax expense
Depreciation expense
Increase in accounts receivable
Decrease in inventories
Cash received from loans receivable
Investing activities –
Loan made to another company
