Example1 Blair Limited -Statement of Financial Position as at 31 December 2008 2008 2007 ASSETS Non-current assets Current assets Inventories Receivables Cash 545,000 410,000 90,000 83,000 45,000 81,000 75,000 64,000 218,000 763,000 220,000 630,000 EQUITY AND LIABILITIES Capital and reserves: $1 ordinary shares Share Premium Account Accumulated profits 150,000 20,000 476,000 646,000 100,000 431,000 531,000 Current liabilities: Trade payables Corporation tax payable 97,000 20,000 69,000 30,000 117,000 763,000 99,000 630,000 Statement of Profit or Loss for the year ended 31 December 2008 Turnover Cost of sales Gross profit Administrative expenses Operating profit Interest Profit before tax Tax Profit after tax The following information is relevant: (1) Administrative expenses include depreciation of $40,000 (2) During the year there had been sales of non-current assets for $30,000 The assets sold had 1,000,000 700,000 300,000 199,000 101,000 1,000 100,000 39,000 61,000 originally cost $50,000 and had a net book value of $20,000 (3) Dividends paid during the year were $16,000 Produce a Statement of Cash Flows for the year ended 31 December 2008