A draft cash flow statement contains the following calculation of net cash inflow from operating activities:
                                                                                    $m
Operating profit                                                           13
Depreciation                                                                  2
Decrease in inventories                                                (3)
Decrease in trade and other receivables                       5
Decrease in trade payables                                           4
                                                                               ————
Net cash inflow from operating activities                        21
Which of the following corrections need to be made to the calculation?
1 Depreciation should be deducted, not added.
2 Decrease in inventories should be added, not deducted.
3 Decrease in receivables should be deducted, not added.
4 Decrease in payables should be deducted, not added.
A 1 and 3
B 2 and 3
C 1 and 4
D 2 and 4

D