The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available at www.zetarplc.com.

Instructions Use the company’s annual report to answer the following questions.

(a) In which section (operating, investing, or financing) does Zetar report interest paid (finance cost)?

(b) Explain why the amount that Zetar reports for cash and cash equivalents in its statement of cash flows is negative.

(c) If Zetar reported under GAAP rather than IFRS, how would its treatment of bank overdrafts differ?

(d) Zetar’s statement of cash flows reports negative “net movement in working capital” in 2010 of

£179 (in thousands). According to the statement of cash flows, what were the components of this “net movement”?