Sonya, a sole trader, had a net cash inflow from operating activities of £20 320 for the year ended 31 March 20X6.During the year she took out a business bank loan of £10 000.She paid interest of £600 in respect of this loan.She sold a non-current asset with a carrying amount of £1650 for £3000, replacing it with a new asset for which she paid £12 500.There were no other relevant transactions.What was Sonya's net cash inflow for the year ended 31 March 20X6?
A)£18 870
B)£20 820
C)£20 220
D)£1420

Question

Quizplus · Accepted Answer

Starting with the net cash inflow from operating activities: £20,320
Add back interest paid on bank loan: £600
Add proceeds from sale of non-current asset: £3,000
Subtract cost of new non-current asset: £12,500
Net cash inflow for the year: £20,220

Sonya, a Sole Trader, Had a Net Cash Inflow from Operating