Accounting Multiple Choice Question – 26 August 2023

The following extracts are taken from the financial statements of Alex plc for the year to 31 December 2021 & 2022.

• operating profit before depreciation: 2021 £1,140k & 2022 £1,220k
• depreciation for the year: 2021 £80k & 2022 £110k
• Inventory: 2021 £55k & 2022 £68k
• Receivables: 2021 £43k & 2022 £35k
• Payables: 2021 £59k & 2022 £47K

What is the operating cash flow for year 2?

Select ONE answer:

1. £1,203k
2. £1,213k
3. £1,237k
4. £1,313k

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – £1,220k + (55-68) + (43-35) + (59-47)
2. Not correct
3. Not correct
4. Not correct

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