Mr Sloppy also leaves a note stating that:

* the operating cash flow for the year was £66 000

* fixed assets were purchased for £35 000

* last year’s tax was paid of £16 500.

You are required to:

(i) Produce a cash flow statement for Mr Sloppy using the above information and any other information you may require from question 2 above.

(ii) Explain why the operating profit for a company and its operating cash flow will be different.