Statement of profit or loss for the year ended 31 December 2014 is shown below.
| $ | |
| Revenue | 738,000 |
| Cost of Sales | (590,400 ) |
| Gross Profit | 147,600 |
| Distribution cost | (12,075) |
| Administrative expenses | (6,172) |
| Investment income | 1,356 |
| Finance cost | ( 2,200) |
| Profit before tax | 128,509 |
| Tax | (7,050) |
| Profit for the year | 121,459 |
Note: Depreciation of $9,120 has been charged.
Other extract from the financial position
| $ | $ | |
| 2014 | 2013 | |
| Inventory | 130,977 | 119,070 |
| Trade receivables | 32,280 | 26,900 |
| Trade payables | 83,349 | 92,610 |
| Taxation payables | 50,670 | 56,300 |
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 | 128,509 |
| Adjustment for depreciation | 9,120 |
| Investment Income | (1,356) |
| Finance cost | 2,200 |
| Operating profit before working capital changes | 138,473 |
| Increase in inventory | (11,907) |
| Increase in receivables | (5,380) |
| Decease in payables | (9,261 ) |
| Cash generated from operations | 111,925 |
| Investment Income | 1,356 |
| Finance cost | (2,200) |
| Tax paid | (12,680) |
| Net Cash flows from operating activities | 98,401 |