You have been appointed as an Auditor of Hakim Ltd. The accountant of the company has reported the cash from operations to be OMR 2,000. Using the following Information and Balance Sheet, comment on the cash flow figure reported by the accountant and help the accountant in arriving at the correct cash flow from operations, using the indirect method. Amount in (OMR) Net Profit as per P & L A/c 6,500 Depreciation 1,500 Loss on sale of Machine 500 Goodwill written off 2,000 Profit on sale of land 4,000 Transfer to general reserve 1,800 Balance sheet Balance as on Particulars 31 December 2018 OMR Stocks 10,000 Debtors 15,000 Creditors 5,000 Accounts Receivable 5,000 Outstanding Expenses 3,000 Accounts Payable 4,000 Prepaid Expenses 1,000

31 -12 2019 OMR Stocks 12,000 Debtors 20,000 Creditors 7,500 Accounts Receivable 8,000 Outstanding Expenses 5,000 Accounts Payable 2,000 Prepaid Expenses 500