1.8 When considering the trade payables (creditors) of BELLA Ltd., which one of the following statements would represent the correct effect in the cash flow statement of 2019?

A. Cash inflow from operating activities of R5 000 000.

B. Cash inflow from financing activities of R 5 000 000.

C. Cash outflow from operating activities of R5 000 000.

D. Cash outflow from financing activities of R5 000 000.

BELLA Ltd. operates in the construction industry and sells a range of building materials to large to firms. Use the following information extracted from BELLA Ltd's 2018 and 2019 financial statements in order to answer the multiple-choice questions on eFundi Part 1 of eFundi test 3 (Group assignment). Assume 365 days in a year. Extracted from BELLA Ltd. Sales (60% on credit) Cost of sales Profit after tax 2019 R'000 200 000 120 000 15 000 2018 R'000 100 000 55 000 10 000 65 000 20 000 Property, plant and equipment (carrying value) Inventory Bank (dt) Trade receivables (debtors) 60 000 10 000 15 000 15 000 25 000 Ordinary shares Retained earnings Long-term loan Trade payables (creditors) Short-term loan Bank overdraft (ct) 15 000 40 000 15 000 25 000 5 000 5 000 10 000 25 000 35 000 20 000 10 000