a$.$ The Magnolia & Co$.$ determines cash flow from operating activities using the indirect method. You are given the following information:

EBT for the year ended $31\mathrm{.}12\mathrm{.}2018$ $ $31,000$

Depreciation charge for $2018$ $ $4,200$

Inventories at $1\mathrm{.}1\mathrm{.}2018$ $ $13,400$

Inventories at $31\mathrm{.}12\mathrm{.}2018$ $ $16,400$

Trade and other receivables at $1\mathrm{.}1\mathrm{.}2018$ $ $10,000$

Trade and other receivables at $31\mathrm{.}12\mathrm{.}2018$ $ $8,600$

Trade and other payables at $1\mathrm{.}1\mathrm{.}2018$ $ $9,800$

Trade and other payables at $31\mathrm{.}12\mathrm{.}2018$ $ $11,400$

Net cash flow from operating activities is

A$.$ $ $38,200$

B$.$ $ $41,200$

C$.$ $ $35,200$

D$.$ $ $38,400$

b$.$ A hire purchase agreement is a

A$.$ Finance lease

B$.$ Operating lease

C$.$ A buy$-$to$-$let agreement

D$.$ None of the above

c$.$ Which one of the following companies is most likely to run into cash flow problems?

A$.$ A profitable new retailer about to embark on ambitious expansion plans

B$.$ A reasonably profitable, long established company with no expansion plans

C$.$ A company which has recently sold part of its operations so as to concentrate on its core areas

D$.$ A loss making company making components of vital strategic importance to the government?

d$.$ Cash from the disposal of fixed assets are classified as:

A$.$ Investing activities

B$.$ Gains are classified as financing activities and losses as investing activities

C$.$ Either financing or operating activities, depending on which method $($direct or indirect$)$ is used to determine cash flows from operating activities

D$.$ Financing activities