The accountant of Lobb Co is preparing a statement of cash flows and has identified the following amounts: Depreciation of $45,000 An increase in inventory levels of $80,000 A decrease in trade receivables of $65,000 A decrease in trade payables of $22,000 What is the net effect of these amounts when reconciling from profit before tax to cash generated from operations?

$8,000

$38,000

$52,000

$82,000