A construction company, Expenso plc, has the following summaries from the income statement and statement of financial position for the year ended 30 September 2012:

1. There were no sales of property, plant and equipment during the year.

2. The dividends paid during the year were £4,105. They have been deducted from retained earnings.

Required:

Prepare a statement of cash flows using the indirect method for the year ended 30 September 2012, this should include the adjustment to net profit before taxation.

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Revenue Cost of Sales Gross Profit 000 460,750 (328,123) 132,627 Other Income Interest received 868 133,495 Expenses includes interest paid 85,000 (123,478) Profit before Taxation 10,017 Taxation (3,005) Profit for Year 7,012