Statement of profit or loss for the year ended 31 December 2014 is shown below.
| $ | |
| Revenue | 861,000 |
| Cost of Sales | (688,800 ) |
| Gross Profit | 172,200 |
| Distribution cost | (1,725) |
| Administrative expenses | (12,344) |
| Investment income | 4,068 |
| Finance cost | ( 9,900) |
| Profit before tax | 152,299 |
| Tax | (14,100) |
| Profit for the year | 138,199 |
Note: Depreciation of $41,040 has been charged.
Other extract from the financial position
| $ | $ | |
| 2014 | 2013 | |
| Inventory | 14,553 | 13,230 |
| Trade receivables | 129,120 | 107,600 |
| Trade payables | 47,628 | 52,920 |
| Taxation payables | 70,938 | 78,820 |
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 | 152,299 |
| Adjustment for depreciation | 41,040 |
| Investment Income | (4,068) |
| Finance cost | 9,900 |
| Operating profit before working capital changes | 199,171 |
| Increase in inventory | (1,323) |
| Increase in receivables | (21,520) |
| Decease in payables | (5,292 ) |
| Cash generated from operations | 171,036 |
| Investment Income | 4,068 |
| Finance cost | (9,900) |
| Tax paid | (21,982) |
| Net Cash flows from operating activities | 143,222 |