The summarised Profit and Loss Account of Baird Products for the year ended 31 March 1984 is as follows:

£000 Sales 864 Cost of sales 709 155 Operating expenses 84 Profit before tax 71 The operating expenses included depreciation of £9000. The following additional 1.4.83 31.3.84

£000 £000 Trade debtors 94 I I I Prepaid expenses 7 4 Trade creditors 86 91 Accrued expenses 13 I9 Stock of goods for resale 124 136 Total funds from operations for 1984, calculated on a cash basis. is:

(a) £81000;

(b) £73000;

(c) £59000;

(d) £65000.

Problems