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Lars Limited Draws Up Its Statement of Cash Flows Using

Question 10

Multiple Choice

Lars Limited draws up its statement of cash flows using the direct method. The company presents you with the following figures:
£ Purchases for the year to 31 May 2019375,000 Trade payables at 31 May 201942,650 Discounts received for the year to 31 May 20196,250 Trade payables at 31 May 201844,815 Purchase returns for the year to 31 May 2019 22,500\begin{array}{lr}& £ \\\text { Purchases for the year to } 31 \text { May } 2019 & 375,000 \\\text { Trade payables at } 31 \text { May } 2019 & 42,650 \\\text { Discounts received for the year to } 31 \text { May } 2019 & 6,250 \\\text { Trade payables at } 31 \text { May } 2018 & 44,815 \\\text { Purchase returns for the year to } 31 \text { May 2019 } & 22,500\end{array} What was the cash paid to suppliers during the financial year to 31 May 2019?


A) £344,085
B) £348,415
C) £356,585
D) £360,915

Correct Answer:

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