CASH is KING ltd, a limited liability company, has non-current assets with a carry value of 300,000 on 1st December 2019. This company is preparing financial statements for the year ended 31 December 2020. Relevant extracts from the accounts are as follows. Statement of comprehensive income Depreciation 40,000 Profit on sale of non-current assets 120,000

Statement of financial position

2020 2019

Plant and machinery - Cost 520,000 500,000 Plant and machinery - depreciation 285,000 250,000 Plant and machinery additions during the year were 40,000. What is the cash flow arising from the sale of non-current assets?

Required:

What is the cash flow arising from the sale of non-current assets?