Q.3 From the following information compute the Cash Flow from Operating activities. And also comment on the overall operations of the M/s NLC. (10 Marks)

M/s NLC.
Income Statement
December 31, 2016
Revenue
Net Sales		3,450,000
Interest Revenue		50,000
Gain of Sale of Marketable Securities		100,000
Total Revenue		3,600,000
Costs and Expanses
Cost of Goods Sold	1,800,000
Operating Expanses (Including Depreciation 140,000)	1,250,000
Interest Expanse	50,000
Income Tax	75,000
Loss on Sales of Plant Assets	25,000
Total Cost and expanses	3,200,000
Net Income		400,000
Additional Information
1. Account Receivable increased by 50,000
2. Accrued interest receivable decreased by 5000
3. Inventory decreased by 50,000 and accounts payable to suppliers decreased by 10,000
4. Short-term prepayment of operating expenses increased by 10,000 and accrued liabilities for operating expenses decreased by 15000
5. The interest payable increased by 10000 during the year
6. The income taxes payable decreased by 20,000