11.4 The summarized final accounts of Jordin plc are detailed below.

Profit and loss account for the year ended 31 May 1996 1997

£m £m Sales 500 550 Cost of goods sold (240) (260)

Overheads (182) (204)

Interest payable (20) (16)

Net profit 58 70 Corporation tax (18) (21)

Dividends (22) (24)

Retained profit 18 25 Balance sheet as at 31 May 1996 1997

£m £m Fixed assets at cost 1,180 1,290 Cumulative depreciation (624) (666)

556 624 Stock 60 57 Trade debtors 91 129 Cash at bank 56 –
Trade creditors (44) (53)
Corporation tax (18) (21)
Dividends` (16) (12)
Bank overdraft – (14)
Debentures (200) (160)
485 550 Ordinary shares at £1 180 210 Share premium 120 130 Retained profits 185 210 485 550

(a) Prepare a cash flow statement in accordance with FRS 1, in respect of Jordin plc for the year ended 31 May 1997. (12 marks)
(ICSA, Paper 6, Introduction to Accounting, June 1997 (modified))