The following information was extracted from the books of Tracy Manufacturing Company: Statement of profit or loss for year ended December 31, 2020 Details $ $ Cash sales 120,000 Credit sales 960,000 1,080,000 Cost of sales: Opening inventory 40,000 Cash purchases 24,000 Credit purchases 576,000 Closing inventory (136,000) (504,000 Gross profit 576,000 Less: Expenses Depreciation 71,200 Wages 184,000 Overheads 120,000 Finance costs 25,600 (400,800) Profit before tax 175,200 Statement of Financial Position (extract) at December 31, 2020 Details 2019 $ 2020 $ Inventory 40,000 136,000 Receivables 12,000 76,000 Payables 10,000 63,200 Overhead accruals 8,000 7,200 All wages are paid in cash. Required: (a) Use the above information to calculate cash generated from operations using the direct method of cash flow. (Show all workings) (16 marks) (b) Explain why a Profit & Loss Statement may not give the best indication of an organizations liquidity. (6 marks) (c) Explain what is meant by non-cash amounts and explain how they are treated in the statement of Cash Flows. (8 marks)