Fancy Goods plc provided the following information for the year ended 31 March 2021. Income Statement for the year ended 31 March 2021 000 Revenue 12,735 Cost of sales (6,872) Gross profit 5,863 Dividends received 650 Gain on disposal of non-current asset 495 Distribution costs (2,338) Administrative expenses (1,374) Profit from operations 3,296 Finance costs (300) Profit before tax 2,996 Tax (582) Profit for the year attributable to equity holders 2,414

Statement of Financial Position at 31 March 2021 000 2020 000 Non-current assets PPE at net book value Investments 19,535 1,000 12,509 1,000 20,535 13,509 Current Assets Inventories 2,738 1,459 Trade and other receivables 1,262 1,358 Cash and cash equivalents 464 4,464 2,817 Total assets 24,999 16,326 Equity Ordinary shares (2) 5,000 4,000 Share premium 2,000 1,500 Retained earnings 10,952 9,338 17,952 14,838 Non-Current liabilities 5% debentures (2025) 6,000 Current liabilities Trade and other payables 735 899 Current tax liabilities 312 509 Bank overdraft 80 7,047 1,488 Total equity and liabilities 24,999 16,326 Additional information: 2) During the year the company paid a dividend of 40p per share on shares held at 31 March 2020. 3) In January 2021, plant costing 650,000 was sold. The accumulated depreciation on this plant was 425,000. 4) The total depreciation charge for the year was 980,000. Required: a) Prepare a Statement of Cash Flows for the year ended 31 March 2021 in accordance with IAS7. Use the indirect method. (18 marks) b) Analyse the movements in cashflow for the year. (7 marks) Total 25 marks