6.3 Torrent plcs income statement for the year ended 31 December 2015 and the statements of financial

Question:

6.3 Torrent plc’s income statement for the year ended 31 December 2015 and the statements of financial position as at 31 December 2014 and 2015 are as follows:

Income statement for the year ended 31 December 2015 £m Revenue 623 Cost of sales (353)
Gross profit 270 Distribution expenses (71)
Administrative expenses (30)
Rental income 27 Operating profit 196 Interest payable (26)
Profit before taxation 170 Taxation (36)
Profit for the year 134 Statements of financial position as at 31 December 2014 and 2015 2014 2015 £m £m ASSETS Non-current assets Property, plant and equipment Land and buildings 310 310 Plant and machinery 325 314 635 624 Current assets Inventories 41 35 Trade receivables 139 145 180 180 Total assets 815 804 EQUITY AND LIABILITIES Equity Called-up ordinary share capital 200 300 Share premium account 40 –
Revaluation reserve 69 9 Retained earnings 123 197 432 506 Non-current liabilities Borrowings – loan notes 250 150 Current liabilities Borrowings (all bank overdraft) 56 89 Trade payables 54 41 Taxation 23 18 133 148 Total equity and liabilities 815 804 During 2015, the business spent £67 million on additional plant and machinery. There were no other non-current asset acquisitions or disposals.
There was no share issue for cash during the year. The interest payable expense was equal in amount to the cash outflow. A dividend of £60 million was paid.

Required:
Prepare the statement of cash flows for Torrent plc for the year ended 31 December 2015.

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