The accountant of a private company has been able to get the use of a computer to produce the spreadsheets shown below but as yet the computer lacks a program to print out final accounts. The accountant nevertheless expects to use the spreadsheet data to reconstruct a summary income statement and a statement of cash flows for the year ending 30 April 2006.

(i) Proceeds of £40,000 were received from the sale of plant and vehicles.
(ii) During the year the company redeemed 10,000 of its £1 ordinary shares for £125,000 wholly out of distributable profits and this transaction has not been included in the spreadsheets.

Required:

(a) Reconstruct the income statement for the year ending 30 April 2006.

(b) Prepare a statement of cash flows for the year ending 30 April 2006.

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Movements of Assets during the year 2005/06 (000) Balance Depreciation sheet value or amortisation Additions Sales during Other last year for year during year year changes Balance sheet value this year Goodwill 40 40 Property 760 (36) 724 Plant and vehicles 540 (84) 420 (60) 816 Inventories 230 24 254 Accounts receivable 254 76 330 Bank and cash 50 14 64 1,834 (120) 460 (60) 114 2,228