Bill, a sole trader, had a net cash outflow from operating activities of £32 400 for the year ended 28 February 20X6.During the year, he received interest of £2600 in respect of a loan made by the business, and drew £10 000 from the business for personal use.There were no other relevant transactions.What was Bill's net cash outflow for the year ended 28 February 20X6?
A)£29 800
B)£45 000
C)£39 800
D)£19 800

Question

Quizplus · Accepted Answer

Net cash outflow from operating activities = £32,400 
Interest received = £2,600 
Cash drawn for personal use = £10,000

Net cash outflow = Net cash outflow from operating activities + Interest received - Cash drawn for personal use

= £32,400 + £2,600 - £10,000 
= £39,800

Therefore, the correct answer is C)£39,800.

Bill, a Sole Trader, Had a Net Cash Outflow from Operating