Additional information

1. The depreciation charge in the year was 12,000 for buildings and 68,000 for plant and equipment.

2. Within Plant and Equipment there is a piece of machinery that at 1 January 2021 had a carrying amount of 40,000. Due to a change in technology its value in use has dropped to 22,000 and it could now be sold for 15,000 net of selling costs.

3. There was a disposal of a piece of machinery in the year which had a carrying amount of 5,000 and gave rise to a 4,000 profit on disposal.

4. Within trade and other receivables there is a balance that relates to interest receivable of 800 for year ended 2021 (1,500 year ended 2020).

5. There were no acquisitions or disposals of intangibles in the year.

6. There was an ordinary share issue in the year.

7. New information became available regarding ongoing litigation based on which Brimstages legal provision was revised.

8. Brimstage paid an ordinary dividend in December 2021.

Requirements

Prepare a statement of cash flows for Brimstage in accordance with IAS 7 Statement of cash flows for the year ended 31 December 2021. The indirect method should be used starting with profit before tax.

Brimstage Ltd (a large packaging manufacturer) has prepared the following financial statements and additional information as at 31 December 2021. Statement of profit or loss and other comprehensive in income of Brimstage Ltd for year ended 31 December 2021. Revenue Cost of sales Gross Profit Administrative expenses Distribution costs Operating loss Investment income Finance cost Loss before tax Tax Profit for year 543,653 (364,900) 178,753 (169,404) (70,330) (60,981) 5,250 (3,950) (59,681) (2,600) (62,281) Other comprehensive income Land revaluation in year Total income recognised in year 300,000 237,719 Statement of Financial Position of Brimstage Ltd at 31 December 2021 2020 Non-Current Assets Land and buildings 1,100,000 500,000 Plant and equipment 434,427 350,500 Intangible assets 90,000 100,000 1,624,427 950,500 Current Assets Inventories 37,672 32,323 Trade and other receivables 83,562 69,532 Cash and cash equivalents 0 17,125 Total Current Assets 121,234 118,980 Total Assets 1,745,661 1,069,480 Equity and Liabilities Equity Share Capital 1 Shares 200,000 100,000 Share Premium 500,000 150,000 Retained Earnings 20,425 110,324 Revaluation Surplus 300,000 0 Total Equity 1,020,425 360,324 Non-Current Liabilities Bank Loan 550,000 600,000 Current Liabilities Trade and other payables Finance cost accrual Overdraft Provision Taxation Total Current Liabilities 54,631 9,150 88,705 20,000 2,750 175,236 44,632 10,200 0 30,000 24,324 109, 156 Total Equity and Liabilities 1,745,661 1,069,480