The balance sheet of Dot Co. for the year ended 31 December 20X2, together with comparative figures for the previous year, is shown in Figure 13.7 (all figures :000).

You are informed that there were no sales of non-current assets during 20X2 and new shares and debentures issued in 20X2 were issued on 1 January.
Calculate operating profit and net cash flow from operations and prepare a cash flow statement for the year 20X2, consistent with IAS 7, as far as the available information permits. Comment on the implications of the statement.

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Figure 13.7 Balance sheet for Dot Co. Non-current assets Less depreciation Current assets Inventory Receivables Cash Payable within one year Trade and operating payables Taxation Other accruals Bank overdraft Net current assets Net assets Represented by 42 w 33 11 20X1 20X2 180 270 (56) (90) 124 180 86 98 51 50 40 90 8 ' (24) (17) (33) (19) (26) (28) (67) (10) (90) 19 143 180 Ordinary share capital 1 shares 20 Share premium account 22% 25 8 10 Retained profits 55 65 Shareholders' fund 83 100 Debentures (15 per cent interest) 60 80 Capital employed 143 180