Brian Ridge Ltd, a construction company, has extracted the following cash flows from its books as at 30 November 2012.

Required:

Prepare a statement of cash flows using the indirect method. The operating profit has already been adjusted for the interest paid and received (so do not adjust again!). You should first prepare a reconciliation of operating profit to operating cash flow.

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Operating profit 25,000 Interest paid 500 Increase in inventories over 3,500 Increase in non-current 4,600 year liabilities Increase in trade receivables 1,300 Purchase of plant and 18,350 over year machinery Increase in trade payables 800 Share capital issued 3,200 over year Dividends paid 550 Depreciation for year 6,000 Purchase of patents 1,650 Tax paid 23,500 Interest received 3,000