A. TRADER BALANCE SHEET AT 31.12.20x2 20x1 20x2 FIXED ASSETS 16,000 3.600 Premises (at cost) 16,000 Less Depreciation 3.900 12,400 12,100 3,000 Fixtures and Fittings (at cost) 8,200 1,000 Less deprecation 1,300 2,000 6.900 14,400 19,000 CURRENT ASSETS 6,880 Stocks 11,300 2,340 6,400 Debtors 5,320 Bank 280 15.900 Cash 500 7.120 CURRENT LIABILITIES 4,300 Creditors 3,720 Bank Overdraft 4.000 4,300 7,720 11,600 WORKING CAPITAL 9.400 26.000 NET ASSET EMPLOYED 28.400 24,600 Opening Capital 26,000 6,800 Add Net Profit 8.600 31.400 34,600 5,400 Less Drawings 6,200 26.000 Closing Capital 28.400 Explain, by means of a Funds Flow Statement, the reduction in Cash/Bank from 6,680 to overdraft 4,000 in spite of net profit of 8,600 in the year.