11.7 Henrietta runs a business, trading as Spicer & Co. She prepares accounts to 31 March each year. By the year-end 31 March 20X4 the business has run into overdraft. Henrietta asks you to prepare a cash flow statement for the business for the year ending 31 March 20X4 and she provides you with the following information:

Spicer & Co: Profit and loss account (summarised) for the year ending 31 March 20X4

£

Sales 598 731 Less: cost of sales

(430131)

Gross profit 168 600 Expenses excluding depreciation

(79 633)

Depreciation

(12471)

Operating profit 76 496 Interest paid

(230)

Net profit 76 266 Spicer & Co.: Balance sheets at 31 March 20X4 and 31 March 20X3 20X4 20X4 20X3 20X3 £
£
£
£
Fixed assets At cost 175 630 128 547 Less: accumulated depreciation (67 248)
(54 777)
108382 73 770 Current assets Stock 40 747 36 600 Debtors and prepayments 50 661 48 730 Cash at bank —
7 423 91 408 92 753 Current liabilities Bank overdraft 1 348 —
Creditors and accruals 36 644 35191 37 992 35 191 Net current assets 53416 57 562 161 798 131332 Capital Capital brought forward 131332 111 335 Profit for the year 76 266 61 297 Drawings (45 800)
(41 300)
161 798 131 332 Note: There were no disposals of fixed assets during the year.
You are required to prepare a cash flow statement for Spicer & Co. for the year ending 31 March 20X4.