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 | (13,800) |
| Administrative expenses | (1,543) |
| Investment income | 3,390 |
| Finance cost | ( 6,600) |
| Profit before tax | 30,647 |
| Tax | (11,750) |
| Profit for the year | 18,897 |
Note: Depreciation of $27,360 has been charged.
Other extract from the financial position
| $ | $ | |
| 2014 | 2013 | |
| Inventory | 130,977 | 119,070 |
| Trade receivables | 96,840 | 80,700 |
| Trade payables | 95,256 | 105,840 |
| 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 | 30,647 |
| Adjustment for depreciation | 27,360 |
| Investment Income | (3,390) |
| Finance cost | 6,600 |
| Operating profit before working capital changes | 61,217 |
| Increase in inventory | (11,907) |
| Increase in receivables | (16,140) |
| Decease in payables | (10,584 ) |
| Cash generated from operations | 22,586 |
| Investment Income | 3,390 |
| Finance cost | (6,600) |
| Tax paid | (16,254) |
| Net Cash flows from operating activities | 3,122 |