The balance sheets of Wendy Langmore’s business as at the end of its two most recent financial years are given to you below:

(i) In December 2022, a delivery van was purchased for £18,950, paid for immediately by bank transfer.
(ii) In April 2023, an item of machinery that had a carrying amount of £2,970 was disposed of for £2,500 cash.
(iii) The figures given for trade receivables in the balance sheets are stated after the deduction of the allowance for doubtful debts.
Required:
In accordance with the requirements of IAS 7, prepare the statement of cash flows for the year ended 31 July 2023 using the indirect method.

Transcribed Image Text:

Non-current assets Property, plant & equipment at cost Less Accumulated depreciation Current assets Inventory Trade receivables Cash at bank Total assets Current liabilities Bank overdrafts Trade payables Non-current liabilities Bank loans Net assets Capital Opening capital Add Net profit for year Add Cash introduced by owner Less Drawings Closing capital 31,090 42,510 (3,585) (35,150) 31 July 2023 109,600 (48,920) 60,680 73,600 134,280 (11,000) 84,545 (38,735) (36,230) 85,810 20,380 1,975 (23,620) 84,545 32,470 41,680 410 31 July 2022 101,440 (40,210) 61,230 74,560 135,790 (36,230) (13,750) 85,810 86,420 19,310 2,300 (22,220) 85,810