Statement of profit or loss for the year ended 31 December 2014 is shown below.
| $ | |
| Revenue | 123,000 |
| Cost of Sales | (98,400 ) |
| Gross Profit | 24,600 |
| Distribution cost | (5,175) |
| Administrative expenses | (10,801) |
| Investment income | 3,390 |
| Finance cost | ( 7,700) |
| Profit before tax | 4,314 |
| Tax | (21,150) |
| Profit for the year | -16,836 |
Note: Depreciation of $36,480 has been charged.
Other extract from the financial position
| $ | $ | |
| 2014 | 2013 | |
| Inventory | 43,659 | 39,690 |
| Trade receivables | 48,420 | 40,350 |
| Trade payables | 107,163 | 119,070 |
| Taxation payables | 30,402 | 33,780 |
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 | 4,314 |
| Adjustment for depreciation | 36,480 |
| Investment Income | (3,390) |
| Finance cost | 7,700 |
| Operating profit before working capital changes | 45,104 |
| Increase in inventory | (3,969) |
| Increase in receivables | (8,070) |
| Decease in payables | (11,907 ) |
| Cash generated from operations | 21,158 |
| Investment Income | 3,390 |
| Finance cost | (7,700) |
| Tax paid | (24,528) |
| Net Cash flows from operating activities | -7,680 |