In the course of preparing a company’s Statement of Cash Flows, the following figures are to be included in the calculation of net cash from operating activities: $ Depreciation charges 980,000 Profit on sale of non-current assets 40,000 Increase in inventories 130,000 Decrease in receivables 100,000 Increase in payables 80,000
What will be the net effect of these items in the Statement of Cash Flows? addition to operating profit of $1,070,000 addition to operating profit of $990,000 subtraction from operating profit of $890,000 addition to operating profit of $890,000 I get answer – addition of $990,000. However, answer given is addition of $890,000