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Nice'n'easy Which Is a Trading Business Operating on a Cash

Question 1

Multiple Choice

Nice'n'easy which is a trading business operating on a cash only basis has an operating profit of £30000 after charging depreciation of £4000 and has an increase in inventory of £5000. What is its cash flow from operations?


A) £21000
B) £39000
C) £31000
D) £29000

Correct Answer:

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