The draft balance sheets of Example Ltd as at 31 March 20X0 and 31 March 20X1 are as follows:

658 • Interpretation 20X1 20X0

(£000) Cost Depn NBV Cost Depn NBV Non-current assets 2,760 ,462 2,298 2,520 ,452 2,068 Current assets Inventor y 1,200 ,800 Trade receivables ,900 ,640 Government securities , 20 —

Cash , ,10 , 80 2,130 1,520 Cur rent liabilities Trade receivables ,500 ,540 Taxation ,170 ,190 Dividends — —

Overdraft ,478 , 8 1,148 ,738 Net current assets ,982 ,782 3,280 2,850 Ordinar y share capital 1,400 1,300 Share premium account ,400 ,200 Retained profits at 31 Mar 20X0 1,150 1,150 Profit for year ,180 —

10% debentures repayable 20X0–X4 ,150 ,200 3,280 2,850 The income statement of Example Ltd for the year ended 31 March 20X1 is as follows:

£000 £000 Sales 3,000 Cost of sales 2,000 Gross profit 1,000 Selling and distribution expenses 300 Administrative expenses 180 –480 520 Interest payable –20 Profit before tax 500 Tax –200 Profit after tax 300 Notes:
1 Non-current assets having a cost of £320,000 on which £92,000 of depreciation had been provided were sold during the year at a profit of £13,000.
2 The company had paid a dividend of £120,000.
3 The non-current asset schedule included the following:
Cost £000 Depreciation £000 Net book value £000 At cost 31 Mar 20X0 2,520 At 31 Mar 20X0 452 At 31 Mar 20X0 2,068 Additions 560 IS charge 102 3,080 554 Disposals 320 Disposal 92 At 31 Mar 20X1 2,760 462 At 31 Mar 20X1 2,298 Required:
A cash flow statement using the format of IAS 7.
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