Question: Question Five: (9 marks) D Ltd has an operating profit of $12m, which includes a depreciation charge of $1m. During the year the trading

Question Five: (9 marks) D Ltd has an operating profit of $12m, which includes a depreciation charge of $1m. During the year the trading stock has increased by $4m, trade debtors have increased by $3m and trade creditors have increased by $5m. Prepare a statement of cash flow from operations. Write your answer clearly in the following table given. Cash flows from operating activities Profit before taxation Adjustment for items not involving a flow of cash Depreciation, amortization, gain or loss on disposal of non- current assets, etc Adjusted profit Increase/decrease in cash due to increase/decrease in current assets Increase/decrease in cash due to working capital changes Cash generated from operations $m $m

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