Question 1 - This question has 3 parts (6 marks)

[3 + 1 + 2] = 6 marks

(a)

For each of the following category, provide one (1) example of transactions. [3 marks]

1. Cash flows from operations

2. Cash flows from financing activities

3. Cash flows from investing activities

(b)

Can depreciation create a difference between operating profit after tax and net cash flow from operating activities? Explain why. [1 mark]

(c)

Can cash flow from operations be negative when net profit is positive? Explain your answer & provide one (1) example. [2 marks]