You have the following extracts from the profit and loss account and balance sheets for Grow Hire Ltd, a transport company.

Grow Hire Ltd Profit and Loss Account Year Ended 31 December 2001 (extracts)

£000 Profit before Taxation (Note) 112,000 Taxation paid (33,600)

Net Profit after Taxation 78,400 Dividends paid (35,800)

Retained Profit 42,600 Note: After adding interest received £13,000 and deducting interest paid £6,500.

Grow Hire Ltd Balance Sheets as at 31 December 2000 2001

£000 £000 £000 £000 Fixed Assets Intangible Assets .

Patents 8,000 42,200 Tangible Assets Land and buildings:

Cost 144,000 164,000 Accumulated depreciation (28,000) 116,000 (44,000) 120,000 Total fixed assets 124,000 162,200 Current Assets Stock 112,000 110,000 Debtors 18,000 11,000 Cash 7,000 10,000 137,000 131,000 Current Liabilities Creditors (45,000) (20,000)

Accruals (4,000) (5,000)

(49,000) (25,000)

Net current assets 88,000 106,000 Total assets less current 212,000 268,200 liabilities Long-term Creditors (16,000) (28,000)

Total net assets 196,000 240,200 Capital and Reserves £000 £000 Share capital 177,000 178,600 Profit and loss 19,000 61,600 Total shareholders’ funds 196,000 240,200 There were no sales of fixed assets during the year.

Required:

Prepare a cash flow statement using the indirect method for the year ended 31 a

December 2001.