6.3 Gregory, trading as Ketchup & Co, made an operating loss of £38,650 in the year ended 31 March 20X6, after deducting £12,750 in depreciation for the year.

At 31 March 20X6 the statement of financial position of Ketchup & Co showed inventory of £32,250, trade receivables of £26,770 and trade payables of £25,500. The corresponding figures at 31 March 20X5 were: inventory £34,400, trade receivables £25,360 and trade payables £23,380.

What is the net cash outflow from operating activities for inclusion in the statement of cash flows for Ketchup & Co for the year ended 31 March 20X6?

a) £23,040

b) £48,540

c) £28,760

d) £54,260