Expenso Ltd (continued)

Expenso Ltd Balance sheets as at 30 September 2001 2002

£000 £000 £000 £000 Fixed Assets Intangible Assets Patents 4,000 4,500 Tangible Assets Land and buildings:

Cost 20,000 26,000 Accumulated depreciation (7,000) (8,000)

Net book value 13,000 18,000 Plant and machinery:

Cost 25,000 30,000 Accumulated depreciation (8,500) (10,000)

Net book value 16,500 29,500 20,000 38,000 Total fixed assets 33,500 42,500 Current Assets Stock 2,800 6,400 Debtors 3,200 4,500 Cash 8,800 1,500 14,800 12,400 Current Liabilities Creditors (4,600) (5,000)

Accruals (400) (350)

Dividends (3,600) (3,800)

Taxation (4,200) (3,200)

(12,800) (12,350)

Net current assets 2,000 50 Total assets less current liabilities 35,500 42,550 Long-term Creditors (12,100) (12,505)

Total net assets 23,400 30,045 Capital and Reserves £000 £000 Share capital 15,030 18,768 Profit and loss account 8,370 Wea Total shareholders’ funds 23,400 30,045 Note: There were no sales of fixed assets during the year.

Required: Prepare a cash flow statement using the indirect method for the year ended 30 September 2002.