Note 5 of the Air NZ's 2019 Annual financial results show that Profit after tax is lower than net cash flows from operating activities for 2019. Provide two reasons why net cash flows from operating activities exceed its profit after tax using examples from the Air NZ's Note 5 of the financial statements. 5. Cash and Cash Equivalents m Cash and cash equivalents include cash on hand, demand deposits, current accounts in banks net of overdrafts and other short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash flows are included in the Statement of Cash Flows net of Goods and Services Tax. Cash and cash equivalents, as stated in the Statement of Cash Flows, are reconciled to the Bank and short-term deposits balance in the Statement of Financial Position as follows: 2019 2018 $M $M Cash balances Other short-term deposits and short-term bills Total cash and cash equivalents 132 923 61 1,282 1,055 1,343 270 390 567 2 525 4 Reconciliation of Net Profit Attributable to Shareholders to Net Cash Flows from Operating Activities: Net profit attributable to shareholders Plus/(less) non-cash items: Depreciation and amortisation Loss on disposal of property, plant and equipment, intangibles and assets held for resale Impairment (reversal)/expense on property, plant and equipment, intangibles and assets held for resale Share of earnings of associates Movement on fuel derivatives Foreign exchange losses Other non-cash items (4) (37) 1 2 11 3 (33) 8 2 13 812 912 Net working capital movements: Assets Revenue in advance Liabilities 19 65 90 (185) 146 158 174 119 Net cash flow from operating activities 986 1,031