MC Question 11
Top Trades Co has been trading for a number of years and is currently going through a period of expansion.
An extract from the statement of cash flows for the year ended 31 December 20X7 for Top Trades Co is presented as
follows:
$’000 | ||
---|---|---|
Net cash from operating activities | 995 | |
Net cash used in investing activities | (540) | |
Net cash used in financing activities | (200) | |
Net increase in cash and cash equivalents | (255) | |
Cash and cash equivalents at the beginning of the period | (200) | |
Cash and cash equivalents at the end of the period | (455) |
Which of the following statements is correct according to the extract of Top Trades Co’s statement of cash flows?
A The company has good working capital management
B Net cash generated from financing activities has been used to fund the additions to non-current assets
C Net cash generated from operating activities has been used to fund the additions to non-current assets
D Existing non-current assets have been sold to cover the cost of the additions to non-current assets