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The following information is provided by Oslo, which has an operating profit in the
year ended 30 November 2009 of $156,700:
(1) Depreciation of $12,700 has been charged to the income statement.
(2) Extract from statement of financial position
2009 2008
Inventory 13,800 13,900
Receivables 17,990 18,540
Prepayments 250 670
Payables 19,500 17,340
Interest accrual 1,300 1,450
What is the cash generated from operations?
A $166,320
B $166,170
C $172,480
D $172,630
Correct answer is D..But to my mind both of C and D is correct as interest accrual should be classified as an operating activity or financing activity..Am i right?
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