An extract from a statement of cash flows prepared by a trainee accountant is shown below.
| $ | |
| Profit before taxation | 123 |
| Depreciation charges | 735 |
| Profit on sales of plant | 735 |
| Increase in inventories | (117) |
| Decrease in receivables | (22) |
| Increase in payables | 11 |
| Cash generated from operations | 1,465 |
What is the figure in the statement of cash flow in respect of net cash flow from operating activities?
Suggested solutions:
| $ | |
| Net profit before taxation | 123 |
| Adjustment for depreciation | 735 |
| Operating profit before working capital changes | 858 |
| Decrease in inventories | 117 |
| Increase in receivables | (22) |
| Increase in payables | 11 |
| Cash generated from operations | 964 |