A company reported the following information for a financial year: $\begin{array}{lr}
\text { Profit from ordinary activities before incometax expense } & 264000 \
\text { Income tax expense } & 70000 \
\text { Depreciation expense } & 24000 \
\text { Issue of shares } & 120000 \
\text { Loan made to another company } & 24000 \
\text { Increase in accounts receivable } & 8000 \
\text { Decrease in inventories } & 12000 \
\text { Cash received from loans receivable } & 4000 \
\text { Dividends paid } & 16000
\end{array}$ What is the net cash inflow (outflow) from investing activities?
A) $4 000 net cash inflow.
B) $24 000 net cash inflow.
C) $(20 000) net cash outflow.
D) $(24 000) net cash outflow.

Question

Quizplus · Accepted Answer

The net cash outflow from investing activities is calculated by subtracting the loan made to another company ($24,000) from the cash received from loans receivable ($4,000), resulting in a net cash outflow of $(20,000).

A Company Reported the Following Information for a Financial Year