Mogull Ltd provides the following information for the period ended 30 June 2005: What are the cash flows from interest,dividends and tax for the period?

Question

Mogull Ltd provides the following information for the period ended 30 June 2005:  What are the cash flows from interest,dividends and tax for the period?

Quizplus · Accepted Answer

From the information given, the cash outflow from interest can be calculated as:
- $40,000 (10% of $400,000)
- $27,000 (9% of $300,000)

Total interest paid = $67,000

The cash inflow from dividends is given as $20,000.

The cash outflow for tax can be calculated as:
- $12,000 (30% of $40,000)
- $6,000 (25% of $24,000)

Total tax paid = $18,000

Therefore, choice B is the correct answer.

Mogull Ltd Provides the Following Information for the Period Ended