An analyst has been given the following information:

Accounts receivable 31.12 Year 2	$300		Accounts receivable 31.12 Year 1	$280
Accounts payable 31.12 Year 2	600		Accounts payable 31.12 Year 1	550
Inventories 31.12 Year 2	100		Inventories 31.12 Year 1	200
Interest	2,000		Capital expenditure	1,000
EBIT	10,000		Shares issued during the year	3,000
Depreciation	1,000		Loans repaid during the year	700

The tax rate is 30% of income before tax. Included in earnings is a loss on disposal of fixed assets of $50.

What is the cash flow from operations?

1. $5,730
2. $6,730
3. $6,780
4. None of the above