The following balance sheets have been prepared for Frank Limited:

Additional information:
There were no purchases or sales of plant and machinery during the year.
Required:

(a) Prepare Frank Limited’s cash flow statement for the year ended 28 February 2009.

(b) What does it tell the managers of Frank Limited?

Transcribed Image Text:

Balance sheets at: Fixed assets Plant and machinery at cost Less: Depreciation Investments at cost Current assets Stocks Debtors Bank 380 Less: Current liabilities 200 28.2.08 28.2.09 000 000 000 000 300 80 220 300 100 200 100 160 190 220 110 10 310 160 20 Creditors Bank overdraft 220 160 160 150 380 450