A sole trader made a net profit of $8000 for the year.
During the year, inventory increased by $500, receivables decreased by $800 and payables increased by $2400.
This would result in:
A . An increase in cash flow of $10100
B . A decrease in cash flow of $10100
C . An increase in cash flow of $10700
D . A decrease in cash flow of $10700
Answer: C