6.6 Henrietta runs a business, trading as Spicer & Co. She prepares accounts to 31 March each year. By the yearend 31 March 20X3 the business has run into overdraft. Henrietta asks you to prepare a statement of cash flows for the business for the year ended 31 March 20X3 and provides you with the following information:

Spicer & Co: Statement of profit or loss (summarized) for the year ended 31 March 20X3

£

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 20X3 and 31 March 20X2 20X3 20X3 20X2 20X2

£ £ £ £

ASSETS Non-current assets At cost 175,630 128,547 Less: accumulated depreciation (67,248) (54,777)

Carrying amount 108,382 73,770 20X3 20X3 20X2 20X2 £ £ £ £
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.
Prepare a statement of cash flows for Spicer & Co for the year ended 31 March 20X3.