8.4* You are presented with the following information:

Required:

(a) Prepare Dennis Limited’s cash flow statement for the year ended 31 January 2007.

(b) Outline what it tells the managers of Dennis Limited.

Transcribed Image Text:

Dennis Limited Balance sheet at 31 January 2007 31 January 2006 31 January 2007 000 000 000 000 Fixed assets Land at cost 600 700 Current assets Stock 100 120 Debtors 200 250 Cash 6 10 306 380 Less: Current liabilities Creditors 180 126 220 160 726 860 Capital and reserves Ordinary share capital Profit and loss account 700 800 26 60 726 860