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 | (8,625) |
| Administrative expenses | (9,258) |
| Investment income | 2,034 |
| Finance cost | ( 9,900) |
| Profit before tax | 23,451 |
| Tax | (2,350) |
| Profit for the year | 21,101 |
Note: Depreciation of $13,680 has been charged.
Other extract from the financial position
| $ | $ | |
| 2014 | 2013 | |
| Inventory | 29,106 | 26,460 |
| Trade receivables | 145,260 | 121,050 |
| Trade payables | 95,256 | 105,840 |
| Taxation payables | 20,268 | 22,520 |
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 | 23,451 |
| Adjustment for depreciation | 13,680 |
| Investment Income | (2,034) |
| Finance cost | 9,900 |
| Operating profit before working capital changes | 44,997 |
| Increase in inventory | (2,646) |
| Increase in receivables | (24,210) |
| Decease in payables | (10,584 ) |
| Cash generated from operations | 7,557 |
| Investment Income | 2,034 |
| Finance cost | (9,900) |
| Tax paid | (4,602) |
| Net Cash flows from operating activities | -4,911 |