A draft cash flow statement contains the following:
                                                                     $m
    Profit before tax                                        22
    Depreciation                                               8
    Increase in inventories                              (4)
    Decrease in receivables                            (3)
    Increase in payables                                 (2)
                                                                  –––
    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   Increase in inventories should be added, not deducted
3   Decrease in receivables should be added, not deducted
4   Increase in payables should be added, not deducted
A   1 and 2
B   1 and 3
C   2 and 4
D   3 and 4

D