The directors of Transport plc produced the following income statement (profit and loss account) for Year 2

Question:

The directors of Transport plc produced the following income statement (profit and loss account) for Year 2 and balance sheet at the end of Year 2.

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Further information 

1. The dividend paid during Year 2 was £31m. The retained earnings increased by £82m profit of the period and decreased by the amount of the dividend £31m.
2. During Year 2 the company acquired vehicles costing £90m.
3. During Year 2 the company sold vehicles that had an original cost of £25m and accumulated depreciation of £12m. The proceeds of sale were £20m.

Required 

1. Prepare a cash flow statement using

(a) the direct method and

(b) the indirect method of calculating operating cash flow.
2. Write a comment on the cash flow of the period.

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