The balance sheets of F Black, a sole trader, for two successive years are shown below. You

are required to draw up a cash flow statement for the year ending 31 December 2006 using the

FRS 1 layout.

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Balance Sheets as at 31 December 2005 2006 f 4 Fixed assets Land and premises (cost 52,000) Plant and machinery (cost 19,000) 44,000 40,000 14,250 (cost 25,000) 19,600 58,250 59,600 Current Assets Stocks 6,600 6,300 Trade debtors 17,800 12,600 Bank 7,100 24,400 26,000 Current Liabilities Trade creditors 22,000 11,600 Bank overdraft 13,650 (35,650) (11,600) (11,250) 14,400 47,000 74,000 Loan (repayable December 2008) (20,000) 47,000 54,000 Represented by Capital account: Balance at 1 January 42,000 47,000 Add Net profit for the year 18,000 22,000 60,000 69,000 Less Drawings (13,000) (15,000) 47,000 54,000