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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:

  1. During the year the company made a one for three bonus issue and then issued some new shares.
  2. A final dividend of 0.40 per share was proposed at the year end.
  3. In January 2018, plant costing 800,000 was sold. The accumulated depreciation on this plant was 525,000.
  4. The total depreciation charge for the year was 880,000.

Required:

  1. Prepare a statement of cash flows for the year ended 31 March 2018 in accordance with IAS7.
  2. Comment on the movements in cashflow for the year.

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