Olly Limited undertook the following transactions during the year ended 30 November 2019:
Issued 20,000 new shares at a price of £1.50 per share.
Made £6,000 of repayments on the business loan.
Received dividends of £1,000 from Molly Limited.
Paid loan interest of £750.
Paid dividends of £10,000.
Received £500 bank interest.
Paid overdraft interest of £125.
What is Olly Limited's net cash inflow from financing activities for the year ended 30 November 2019?
A) £3,125
B) £13,125
C) £13,625
D) £14,625

Question

Quizplus · Accepted Answer

Net cash inflow from financing activities includes cash inflows from issuing shares (£30,000) and cash outflows from loan repayments (£6,000) and dividends paid (£10,000). Therefore, the net cash inflow is £30,000 - £6,000 - £10,000 = £14,000.

Olly Limited Undertook the Following Transactions During the Year Ended