Exercise 1: An entity that presents its statement of cash flows using the indirect method recognized OMR7,000 profit for the year ended 31 December 20X8. Income in 20X8 comprises a gain of OMR 750 on the sale of an item of property, plant and equipment and an increase of OMR 250 in the fair value of its investment property. Expenses in 20X8 comprise OMR 50,000 in cost of goods sold, OMR 42,600 in staff costs, OMR 800 in depreciation of its office equipment, OMR 100 amortization of its intangible assets and a decrease of OMR 500 in the fair value of its investment in the publicly traded shares of another entity. The entity's statement of financial position at 31 December 20X8 includes OMR 1,700 trade receivables (20X7: OMR 1,000), OMR 1,200 inventories (20X7: OMR 2,200) and OMR 2,000 trade payables (20X7: OMR 2,400). Extract from the entity's statement of cash flows for the year ended 31 December 20X8 Answer: Net cash flow from operating activities 7,300