6.4 Henrietta runs a business, trading as Spicer & Co. She prepares accounts to 31 March each year. By the year-end 31 March 2012 the business has run into overdraft. Henrietta asks you to prepare a statement of cash flows for the business for the year ending 31 March 2012 and provides you with the following information:
Spicer & Co: Income statement (summarized) for the year ending 31 March 2012 £
Revenue 598 731 Less: cost of sales (430 131)
Gross profit 168 600 Expenses excluding depreciation (79 633)
Depreciation (12 471)
Operating profit 76 496 Interest paid (230)
Net profit 76 266 Spicer & Co: Statements of financial position at 31 March 2012 and 31 March 2011 2012 2012 2011 2011 £ £ £ £
ASSETS Non-current assets At cost 175 630 128 547 Less: accumulated depreciation (67 248) (54 777)
Carrying amount 108 382 73 770 Current assets Inventory 40 747 36 600 Trade receivables 50 661 48 730 Cash at bank – 7 423 91 408 92 753 199 790 166 523 CAPITAL AND LIABILITIES Capital Capital brought forward 131 332 111 335 Profit for the year 76 266 61 297 Drawings (45 800) (41 300)
161 798 131 332 Current liabilities Overdraft 1 348 –
Trade payables 36 644 35 191 37 992 35 191 199 790 166 523 Note: there were no disposals of non-current assets during the year.
Required: prepare a statement of cash flows for Spicer & Co for the year ending 31 March 2012.