You are presented with the following summarised information relating to Ward plc:

1. The taxation charge in the profit and loss account includes the following items:

2. During the year to 30 June 2008, Ward sold an asset originally costing £150,000 for £5,000 in cash.
The depreciation charged on this asset was £135,000. The total depreciation charged in the profit and loss account for the year to 30 June 2008 was £384,000.

3. Other creditors including taxation and social security includes the following items:

4. The deferred taxation balances include the following items:

Additional information:
1. During the year to 30 June 2011, some fixed assets originally costing £25,000 had been sold for £20,000 in cash. The accumulated depreciation on these fixed assets at 30 June 2010 amounted to £10,000. Similarly, some of the investments originally costing £150,000 had been sold for cash at their book value.
2. The taxation balances disclosed in the above balance sheets represent the actual amounts agreed with the Inland Revenue. All taxes were paid on their due dates. Advance corporation tax may be ignored.
3. A dividend of £130,000 was paid during the year to 30 June 2011.
4. During the year to 30 June 2001, the company made a 1-for-2 rights issue of 250 ordinary £1 shares at 120p per share.

Required:

Prepare Track Ltd?s cash flow statement for the year to 30 June 2011 in accordance with the requirements of FRS 1 using the indirect method. (Do not attempt to provide the reconciliation of net cash flow to net debt.)

Transcribed Image Text:

Profit and Loss Account for the year ending 30 June 2008 000 Net profit for the year before taxation 900 Taxation (see Note 1) (636) Profit for the year after taxation Extraordinary item (after tax relief of 35,000) 264 (90) Profit for the year after taxation and extraordinary item 174