-> 14.8 The following information has been extracted from the books of Nimmo Limited for the year to 31 December 20X9: Profit and Loss Accounts for year to 31 December 20X8 000 20X9 000 Profit before taxation Taxation 9,500 20,400 (3,200) (5,200) Ordinary: interim (paid) Profit after taxation Dividends: Preference (paid) final (proposed) 6,300 15,200 (100) ( 100) (1,000) (2,000) (3,000) (6,000) Retained profit for the year 2,200 7,100 Balance Sheets at 31 December 20X8 20X9 000 000 Fixed assets Plant, machinery and equipment, at cost 17,600 23,900 Less Accumulated depreciation Current assets Stocks Trade debtors Prepayments Cash at bank and in hand Current liabilities Bank overdraft Trade creditors Accruals Taxation 9,500 10,750 8,100 13,150 5,000 15,000 8,600 26,700 300 400 600 14,500 42,100 (16,200) ( 6,000) (10,000) ( 800) ( 1,000) ( 3,200) ( 5,200) Dividends ( 3,000) ( 6,000) (13,000) 9,600 (38,400) 16,850 Share capital Ordinary shares of 1 each 10% preference shares of 1 each. Profit and loss account 5,000 5,000 1,000 1,000 3,000 10,100 9,000 16,100 Loans 15% debenture stock 600 9,600 750 16,850 Additional information: 1 The directors are extremely concerned about the large bank overdraft as at 31 December 20X9 and they attribute this mainly to the increase in trade debtors as a result of alleged poor credit control. Part 2 Companies 2 During the year to 31 December 20X9, fixed assets originally costing 5,500,000 were sold for 1,000,000. The accumulated depreciation on these assets as at 31 December 20X8 was 3,800,000. Required: Prepare a cash flow statement for the year to 31 December 20X9. Authors' note: Use the FRS 1 indirect method but do not attempt to provide the reconciliation of net cash flow to net debt. (Association of Accounting Technicians) 257