Neco Model Questions Vol1 2018 Financial Accounting Question 8
Practice objective / multiple choice question 8 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Using the indirect method, prepare a statement of cash flows for ABC Enterprises for the year ended 31 December given the following information (all amounts in \(\text{₦}\)):\n- Net profit before tax: 500,000\n- Depreciation: 80,000\n- Gain on sale of equipment: 20,000\n- Increase in inventories: 30,000\n- Decrease in trade receivables: 15,000\n- Increase in trade payables: 25,000\n- Tax paid: 40,000\n- Interest paid: 10,000\n- Purchase of equipment: 120,000\n- Proceeds from sale of equipment: 50,000\n- Issue of share capital: 200,000\n- Repayment of long‑term loan: 70,000\nWhat is the net increase in cash and cash equivalents for the year?
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This is Neco Model Questions Vol1 2018 Financial Accounting Question 8. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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