An extract from a statement of cash flows prepared by a trainee accountant is shown below.
| $ | |
| Profit before taxation | 246 |
| Depreciation charges | 105 |
| Profit on sales of plant | 630 |
| Increase in inventories | (91) |
| Decrease in receivables | (88) |
| Increase in payables | 88 |
| Cash generated from operations | 890 |
What is the figure in the statement of cash flow in respect of net cash flow from operating activities?
Suggested solutions:
| $ | |
| Net profit before taxation | 246 |
| Adjustment for depreciation | 105 |
| Operating profit before working capital changes | 351 |
| Decrease in inventories | 91 |
| Increase in receivables | (88) |
| Increase in payables | 88 |
| Cash generated from operations | 442 |