The following scenario relates to questions 210–214.
The assistant accountant of Cooper has started work on the statement of cash flows for the year ended
31 December 20X8, completing a draft of the cash generated from operations as shown below.
Profit from operations 3,500
Release of government grant 1,400
Profit on disposal of property (3,700)
Increase in inventories (400)
Decrease in trade and other receivables (300)
Increase in trade and other payables 900
Cash generated from operations 13,400
In addition to this, the assistant has seen that the balance of property was $39.5 million at 1 January 20X8 and $29 million at 31 December 20X8. There were no additions of property in the year.
There was also a deferred income balance relating to government grants of $6 million at 1 January 20X8. The closing deferred income balance was $8 million.
210. What method has Cooper’s assistant accountant used to calculate the cash generated from operations?