Below are two balance sheets for Stroish Ltd for the most recent and the previous year’s trading periods.

Additional information is available:
1. An extract from the income statement appears below.

2. Dividends paid during the year totalled £9,000.

3. Machinery was sold during the year for £3,200. It had originally cost £22,000 and had accumulated depreciation on the machinery totalling £17,500.

4. A bonus issue of shares was made during the year on the basis of three ordinary shares for every five already held. The capital reserves were utilized in the creation of the bonus issue.

Construct a statement of cash flows for the year ended 31 December 2025 and a reconciliation of cash flow at the start and the end of the year.

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Land and buildings Plant and equipment Machinery Current assets Inventory Trade receivables Stroish Ltd Balance sheets at financial year end Year ended 31 December 2024 Cost Dep NBV Year ended 31 December 2025 Cost Dep NBV 45,000 455,000 500,000 40,000 460,000 500,000 72,000 22,000 50,000 98,000 39,500 58,500 27,500 18.300 2.200 45.000 22.550 22,450 599,500 80,300 519,200 643,000 107,050 535,950 27,357 16,852 17,313 12,313 Cash and cash 8.898 equivalents 38,524 44,209 Current liabilities Trade payables 9,780 4,980 Bank overdraft - 8,048 Tax owing 6.935 16.715 21,809 3.422 16,450 27,759 541,009 563,709 Non-current liabilities Loan (long-term) 100,000 100,000 441.009 463,709 Equity Ordinary share capital 200,000 320,000 Share premium account 80,000 Revaluation reserve 40,000 Retained earnings 121,009 143.709 441,009 463,709