Question
Cashington plc provided the following information for the year ended 31 March 2018. Income Statement for the year ended 31 March 2018 000 Revenue 24,470
Cashington plc provided the following information for the year ended 31 March 2018.
Income Statement for the year ended 31 March 2018 | |||
| 000 |
| |
Revenue | 24,470 |
| |
Cost of sales | (13,744) |
| |
Gross profit | 10,726 |
| |
Dividends received | 1,300 |
| |
Gain on disposal of non-current asset | 990 |
| |
Distribution costs | (4,676) |
| |
Administrative expenses | (2,748) |
| |
Profit from operations | 5,592 |
| |
Finance costs | (600) |
| |
Profit before tax | 4,992 |
| |
Tax | (1,164) |
| |
Profit for the year attributable to equity holders | 3,828 |
| |
Statement of Financial Position at 31 March | |||
| 2018 000 | 2017 000 | |
PPE at net book value | 39,070 | 25,018 | |
Current Assets |
|
| |
Inventories | 5,476 | 2,918 | |
Trade and other receivables | 2,524 | 2,716 | |
Cash and cash equivalents | 928 |
| |
Total assets | 47,998 | 30,652 | |
Equity |
|
| |
Ordinary shares (1) | 9,000 | 6,000 | |
Share premium | 4,000 | 3,000 | |
Retained earnings | 20,504 | 18,676 | |
| 33,504 | 27,676 | |
Non-Current liabilities |
|
| |
5% debentures (2025) | 12,400 |
| |
Current liabilities |
|
| |
Trade and other payables | 1,470 | 1,798 | |
Current tax liabilities | 624 | 1,018 | |
Bank overdraft |
| 160 | |
Total equity and liabilities | 47,998 | 30,652 | |
Additional information:
- During the year the company made a one for three bonus issue and then issued some new shares.
- A final dividend of 0.40 per share was proposed at the year end.
- In January 2018, plant costing 800,000 was sold. The accumulated depreciation on this plant was 525,000.
- The total depreciation charge for the year was 880,000.
Required:
- Prepare a statement of cash flows for the year ended 31 March 2018 in accordance with IAS7.
- Comment on the movements in cashflow for the year.
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