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Question - In 2020, Tes Group acquired Oxim Ltd for a consideration of £150m. At acquisition date, Oxim had net assets of £67m, which consisted of £27m of Trade Receivables, £30m of Land and £10m of Property, Plant and Equipment (PPE). At the beginning of the year, Tes's PPE opening balance was £54m, and at the end of the year, its closing balance was £55m. If depreciation of £25m was charged during the year, what is the impact of changes in plant, property and equipment on the consolidated cash flow statement for Tes Group?
A. Cash outflow of £16m in the financing section of the Consolidated Cash Flow Statement
B. Cash outflow of £16m in the investing section of the Consolidated Cash Flow Statement
C. Cash outflow of £26m in the investing section of the Consolidated Cash Flow Statement
D. Cash outflow of £26m in the operating section of the Consolidated Cash Flow Statement
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