Ninian’s business borrows £10 000 from the bank at an annual interest rate of 5.3%.

Three of the following six statements are correct:

1. The annual interest payment has no impact on profits
2. When the loan is taken out, Ninian’s business assets increase and liabilities remain the same
3. When the loan is taken out, the asset of cash in the statement of financial position is increased by £10 000
4. The annual interest payment decreases cash
5. When the loan is taken out there is no effect on assets and liabilities
6. When the loan is taken out liabilities increase by £10 000

Which statements are correct?

Nestor’s business sells a non-current asset for cash proceeds of £6200. The asset was originally bought for £12 250 and accumulated depreciation at the point of sale was £7265.

Three of the following six statements are correct:

1. Cash increases by £6200
2. Cash increases by £4985
3. The carrying amount of non-current assets decreases by £6200
4. The carrying amount of non-current assets decreases by £4985
5. Profits increase by £1215
6. Profits decrease by £1215

Which statements are correct?

Which of the following transactions increases or decreases the net cash flow from operating activities?

Which of the following does not affect a business's net cash flow from operating activities?

Extracts from Ondine’s statements of financial position at 31 December 20X4 and 20X5 show the following:

	20X5	20X4
	£	£
Inventory	37 250	36 961
Receivables	49 499	51 447
Cash at bank	8 611	10 200
	95 360	98 608
Payables	27 820	29 224

Three of the following six statements are correct:
Between 20X4 and 20X5:
1. There has been a cash inflow in respect of payables
2. There has been a cash outflow in respect of payables
3. There has been a cash outflow in respect of inventory
4. There has been a cash inflow in respect of inventory
5. There has been a cash outflow in respect of receivables
6. There has been a cash inflow in respect of receivables

Which statements are correct?

Extracts from Oriel’s statements of financial position at 31 March 20X2 and 20X3 are as follows:

	20X3	20X2
	£	£
Inventory	82 930	80 370
Receivables	61 472	61 044
Cash at bank	-	103
	144 402	141 517
Payables	65 551	70 772
Bank overdraft	10 290	-
	75 841	70 772

Three of the following six statements are correct:
Between 20X2 and 20X3
1. There has been an inflow of cash in respect of payables
2. There has been an outflow of cash in respect of payables
3. There has been an inflow of cash in respect of inventory
4. There has been an outflow of cash in respect of inventory
5. There has been an inflow of cash in respect of receivables
6. There has been an outflow of cash in respect of receivables

Which three statements are correct?

Priti’s business makes an operating profit of £29 975 in the year ending 31 December 20X4, after deducting £7668 for depreciation.

At 31 December 20X4 her statement of financial position showed inventory of £33 250, receivables and prepayments of £26 772 and payables of £35 556. On 31 December 20X3 the corresponding figures were: inventory £34 490, receivables and prepayments £22 894 and payables £29 493.

What is the net cash inflow from operating activities to be included in Priti’s statement of cash flows for the year ending 31 December 20X4?

Pascal’s business makes an operating profit of £28 600 in the year ending 31 May 20X6. The operating profit is after the deduction of depreciation of £3200 and amortisation of £1470.

At 31 May 20X6, the statement of financial position showed inventory of £42 671, receivables and prepayments of £18 007, cash at bank of £2440 and payables of £38 765. On 31 May 20X5 the corresponding figures were: inventory £41 450, receivables and prepayments £17 997, cash at bank £1385 and payables of £39 887.

What is the net cash inflow from operating activities to be included in Pascal’s statement of cash flows for the year ending 31 May 20X6?

Paige’s business makes a net cash inflow from operating activities of £128 400 in the year ending 31 December 20X4. During the year she has made loan repayments of £20 000 and has paid interest on the loan of £1850. Also, she sold a car for £18 000. It had been purchased originally for £33 500 and accumulated depreciation at the date of sale was £16 270. The car was immediately replaced by a new one which cost £38 750. Depreciation to 31 December 20X4 on the new car was £2421.

What was Paige’s net cash inflow for the year ending 31 December 20X4?

Pamela’s net cash outflow from operating activities for the year ending 31 March 20X7 was £2280. She sold non-current assets with a total carrying amount of £24 600 for £28 360 and purchased new non-current assets for £36 206. Pamela’s drawings totalled £26 000. She received repayments of £6000 in respect of a long-term business loan she had made some years ago to one of her suppliers. Interest received in respect of this loan was £504 for the year.

What is Pamela’s net cash outflow for the year ending 31 March 20X7?