Self-test You are presented with the following balance sheet for J J Motors Ltd. The company has made a profit in 2009 of £30,600. The director advises you that he is short of funds and, in fact, has an overdraft at the year end of £3,240. He does not understand where all the money has gone and asks you to prepare a cash flow statement to answer this problem.

Balance sheet as at 31 December 2008 2009 Fixed assets 55,800 66,600 Provision for depreciation 5,400 6,120 50,400 60,480 Current assets Stock 11,160 21,240 Debtors 14,040 12,240 Bank 5,400 30,600 33,480 Current liabilities Creditors 7,200 7,920 Overdraft 3,240 7,2000 23,400 11,160 22,320 73,800 82,800 Share capital 48,600 27,000 Profit and loss account 25,200 55,800 73,800 82,800