A draft cash flow statement contains the following calculation of net cash inflow from operating activities:
                                                                                          $m
Operating profit                                                                 13
Depreciation                                                                        2
Decrease in inventories                                                      (3)
Decrease in trade and other receivables                             5
Decrease in trade payables                                                 4
–––
Net cash inflow from operating activities                             21

Which of the following corrections need to be made to the calculation?

1    Depreciation should be deducted, not added.
2    Decrease in inventories should be added, not deducted.
3    Decrease in receivables should be deducted, not added.
4    Decrease in payables should be deducted, not added.

A    1 and 3
B    2 and 3
C    1 and 4
D    2 and 4

D

a