Prepare a cash flow statement in acceptable form for Peak Ltd for the year ended 31 December 20X5.

The following additional information is available:
► A market issue of shares was made on 1 January 20X5.
► During 20X5 equipment originally purchased at £65,200 was sold for £17,900, accumulated depreciation being £37,700. The difference on disposal had been taken to the profit and loss account.
► Buildings costing £100,000 had been purchased during 20X5 and the depreci¬ ation charged for the year 20X5 on other assets was £25,000. The only assets revalued during the year were the buildings.
► Dividends received amounted to £7,500 and interest received £15,000 during 20X5 both of which had been credited to the profit and loss account.
► The debentures were issued on 1 January 20X5 and all interest due had been paid.

Required

(a) Prepare the cash flow statement for the year ended 31 December 20X5 in a form suitable for publication.

(b) Summarise the main conclusions arising from the cash flow produced for Peak Ltd.

(c) Comment on the usefulness of the cash flow statement to users of financial statements.

(d) Support your answer by relevant articles.

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BALANCE SHEET AS AT 31.12.X4 31.12.X5 Fixed assets nbv Buildings 543,100 624,500 Other 93,450 102,300 Investments 56,000 692,550 142,000 868,800 Current assets: Stock 82,400 Debtors 54,300 83,400 48,750 Bank 1,100 137,800 132,150 Creditors' amounts falling due within one year: Trade creditors Taxation Dividends Bank 63,470 35,480 10,500 12,500 35,000 38,000 10,500 108,970 96,480 Net current assets 28,830 35,670 Total assets less 721,380 904,470 current liabilities