State whether the following are true or false. If false, explain why.

(a) Depreciation and profit from sale of fixed assets are both non-cash flow items and must be added back to operating profit to arrive at operating cash flow.

(b) Stock, debtors and fixed assets are all items of working capital.

(c) Decreases in current assets such as stock, debtors and prepayments must be added back to profit to arrive at cash flow.

(d) We need to adjust profit before taxation for non-operating items (such as interest paid or received) to arrive at operating profit for non-listed companies.

(e) The indirect method of cash flow statement is seldom used by large companies.