Statement of profit or loss for the year ended 31 December 2014 is shown below.
| $ | |
| Revenue | 246,000 |
| Cost of Sales | (196,800 ) |
| Gross Profit | 49,200 |
| Distribution cost | (1,725) |
| Administrative expenses | (4,629) |
| Investment income | 678 |
| Finance cost | ( 9,900) |
| Profit before tax | 33,624 |
| Tax | (2,350) |
| Profit for the year | 31,274 |
Note: Depreciation of $4,560 has been charged.
Other extract from the financial position
| $ | $ | |
| 2014 | 2013 | |
| Inventory | 101,871 | 92,610 |
| Trade receivables | 129,120 | 107,600 |
| Trade payables | 35,721 | 39,690 |
| Taxation payables | 40,536 | 45,040 |
What is the figures in the statement of cash flow in respect of net cash flow from operating activities?
Suggested solutions:
| $ | |
| Net profit before taxation | 33,624 |
| Adjustment for depreciation | 4,560 |
| Investment Income | (678) |
| Finance cost | 9,900 |
| Operating profit before working capital changes | 47,406 |
| Increase in inventory | (9,261) |
| Increase in receivables | (21,520) |
| Decease in payables | (3,969 ) |
| Cash generated from operations | 12,656 |
| Investment Income | 678 |
| Finance cost | (9,900) |
| Tax paid | (6,854) |
| Net Cash flows from operating activities | -3,420 |