First Team Sports Inc. is engaged in the manufacture (through independent contractors) and distribution of in-line roller skates, ice skates, street hockey equipment, and related accessory Sony Ericsson products. Its recent annual report included the following on its statement of financial position:

Required:
Explain the effects of the changes in inventory and trade payables on cash flow from operating activities for the current year.

Transcribed Image Text:

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Current Year Previous Year Inventory (Note 3) 22.813 850 20,838,171 Trade payables 9,462,883 9,015,376