Jeff Cavendish, a sole trader, had a net cash inflow from operating activities of £9650 in his financial year ended 31 May 20X2.During the year he sold non-current assets with a carrying amount of £13 750 for £12 000.He purchased new non-current assets for £22 000.He received repayments totaling £6000 in respect of a business loan made to one of his suppliers.Interest received in respect of this loan was £1300.There were no other relevant transactions. What was Jeff's net cash inflow or outflow for the year ended 31 May 20X2?
A)Inflow of £24 350
B)Outflow of £5050
C)Inflow of £6950
D)Inflow of £6100

Question

Quizplus · Accepted Answer

- Net cash inflow from operating activities = £9650
- Cash inflow from sale of non-current assets = £12000
- Cash outflow from purchase of new non-current assets = £22000
- Cash inflow from repayment of business loan = £6000
- Interest received on business loan = £1300

Therefore, the overall net cash inflow for the year is:
£9650 + £12000 - £22000 + £6000 + £1300 = £6950. 
Thus, the correct answer is option C, which is an inflow of £6950.

Jeff Cavendish, a Sole Trader, Had a Net Cash Inflow