The following financial statements for Blackstone plc are a slightly simplified set of published accounts. Blackstone plc is an engineering business that developed a new range of products in 2011. These products now account for 60 per cent of its sales revenue.

3 Intangible assets represent the amounts paid for the goodwill of another engineering business acquired during the year.
4 Proceeds from the sale of non-current assets in the year ended 31 March 2015 amounted to £54 million.
5 £300 million was paid in dividends on ordinary shares in 2014, and £400 million in 2015.
Required:
Prepare a statement of cash flows for Blackstone plc for the year ended 31 March 2015.
(Hint: A loss (deficit) on disposal of non-current assets is simply an additional amount of depreciation and should be dealt with as such in preparing the statement of cash flows.)

Transcribed Image Text:

Income statement for the years ended 31 March Revenue Cost of sales Gross profit Operating expenses Operating profit Interest payable Profit before taxation Taxation Profit for the year ASSETS 2014 2015 Notes m m 7,003 11,205 (3,748) (5,809) 3,255 5,396 (2,205) (3,087) 1,050 2,309 (216) (456) 834 1,853 (210) (390) 624 1,463 Statements of financial position as at 31 March Non-current assets 2014 2015 Notes m m Property, plant and equipment Intangible assets 23 4,300 7,535 700 4,300 8,235 Current assets Inventories Trade receivables 1,209 2,410 641 1,173 Cash at bank 123 1,973 3,583 Total assets 6,273 11,818 EQUITY AND LIABILITIES Equity Share capital 1,800 1,800 Share premium 600 600 Capital reserves 352 352 Retained earnings 685 1,748 3,437 4,500 Non-current liabilities Borrowings-bank loan (repayable 1,800 3,800 2018) Current liabilities Trade payables 931 1,507 Taxation 105 195 Borrowings (all bank overdraft) 1,816 1,036 3,518 Total equity and liabilities 6,273 11,818