The following information relates to the activities of Pilot plc:

 LO4 20X8 20X7 £000 £000 £000 £000 Non-current assets Freehold land at cost 780 700 Plant and equipment—cost 660 560 Less: accumulated depreciation 296 230 364 330 1,144 1,030 Current assets Inventory 498 356 Receivables 304 330 Bank – 30 802 716 Total assets 1,946 1,746 Equity Equity £1 shares 550 400 Share premium 210 160 Retained earnings 490 376 1,250 936 Current liabilities Trade payables 230 240 Corporation tax 90 120 Bank overdraft 126 –
446 360 Non-current liabilities 6% debentures 250 450 Total liabilities 696 810 Total equity and liabilities £1,946 £1,746 Statement of comprehensive income for the year ended 31 March 20X8 £000 Revenue 4,520 Cost of sales (3,420)
Gross profit 1,100

£000 Expenses (766)
Profit before tax 334 Corporation tax (150)
Profit after tax £184 Statement of changes in equity for the year ended 31 March 20X8 Share Capital Share Premium Retained Earnings Total £000 £000 £000 £000 Balance at 1 April 20X7 400 160 376 936 Issue of share capital 150 50 200 Profit for the year 184 184 Dividends paid (70) (70)
Balance at 31 March 20X8 550 210 490 1,250 You are informed that:
Plant which originally cost £80,000 was sold for cash of £14,000. The profit/loss on disposal is included in expenses. Accumulated depreciation relating to the plant sold amounted to £58,000.
The debentures were repaid on 30 September 20X7. Interest of £21 for the year was fully paid by 31 March 20X8 and is included in expenses.
Required:
Calculate the net increase/decrease in cash for the year ended 31 March 20X8.
Calculate the cash flow from operating activities using the indirect method (i.e.
reconciling profit before tax to cash flow from operating activities).
Prepare the complete statement of cash flows for Pilot plc for the year ended 31 March 20X8 in accordance with IAS 7 Statement of Cash Flows.
Comment on the information provided by the statement of cash flows.