The accountant of a private company has been able to get the use of a computer to produce the spreadsheets shown below but as yet the computer lacks a program to print out final accounts. The accountant nevertheless expects to use the spreadsheet data to reconstruct a summary profit and loss account and a cash flow statement for the year to 30 April 20X6.

Notes:

(i) Proceeds of £40,000 were received from the sale of plant and vehicles.

(ii) During the year the company redeemed 10,000 of its £1 ordinary shares for £125,000 wholly out of distributable profits and this transaction has not been included in the spreadsheets.

Required:

(a) Reconstruct the profit and loss account for the year to 30 April 20X6.

(b) Prepare a cash flow statement for the year to 30 April 20X6.

Transcribed Image Text:

Goodwill Property Plant and vehicles Stocks Debtors Bank and cash Movements of Assets during the year 20X5/X6 (£000) Depreciation or amortisation for year Balance sheet value last year 760 540 230 254 50 1,834 (36) (84) (120) Sales Additions during Other during year year changes 40 420 460 (60) T (60) 24 76 14 10 114 Balance sheet value this year 40 724 816 254 330 64 2,228