The reported net profit of a company for the year is £32m after charging depreciation of £6m. During the year, there was an increase of £4m in inventory (stock). Trade receivables (debtors) remained constant. Trade payables (creditors) increased by £6m. What is the net cash inflow from operating activities?

(a) £16m

(b) £28m

(c) £40m

(d) £48m

The following information relates to question. 

On 1 July, a business starts selling goods on credit for the first time. During the month of July, the business sells goods on credit for £12,000 and sells further goods for cash £9,000. One quarter of the credit customers pay their bills before the end of July. There are no stocks at the start or end of the month. Goods costing £8,000 are acquired on credit during the month. Three quarters of purchases are paid to suppliers in July. There were no trade creditors at the start of July.