How was the Cash flow solution below calculated for each figure using the information, comprehensive income and financial position statements below:

solution:

Statement of Financial Position 31f12i'2019 SiHZi'EU'lB EDOU's EDDD'S Non-current [fixed )assets Cost Accumulated Depreciation Net book value Current assets Inventory (stocks) Trade receivables (debtors) Cash at bani: Total current assets Total assets Equity Share capital Retained earnings Total equity Non-current liabilities Debenture stock {5% repayable Year 20} Current liabilities Trade payables (creditors) Taxation Total current liabilities Total Liabilities Total Equity and Liabilities Statement of changes In equity Equity holders' funds at start of year Add: profit of the period Less: dividend paid Equity holders' funds at end of year (b) The following represents Grenade Ltd Statement of Comprehensive Income for the period ending 31 December 2019 and Statements of Financial Position as at 31 December 2013 and 31 December 2019; construct a Cash Flow Statementfor year ending 31 December 2019 using the indirect method {25 marks} lnformatlon During the year to 31 December Year 2019. Grenade Ltd sold some non-current (fixed) assets which has cost 140,000 and a net book value of 30000. There is loss on sale of this xed asset 5000. Statement of Comprehensive Income {extract} For the Period Ended 31 December 2019 Prot before deducting interest and taxation Interest expense Prot before taxation Taxation Prot after taxation 214 Cash flows from operating activities Profit before taxation 187 Adjustment for items not involving a flow of cash: Depreciation 510 Loss on disposal 5 Total adjustments 515 Adjusted profit 702 (Increase) in inventories -26 Decrease in trade receivables 116 (Decrease) in trade payables 1 Increase/ (decrease) in cash due to working capital changes 91 Cash generated from operations 793 Interest paid 8 Taxes paid 50 Net cash inflow from operating activities 835 Cash flows from investing activities Purchase of non-current assets -590 Proceeds of sale of non-current assets 25 Net cash used in investing activities -565 Cash flows from financing activities Proceeds from long-term borrowing -200 Dividends paid -50 Net cash raised from financing activities 250 Increase/ (decrease) in cash and cash equivalents 20 Cash and cash equivalents at the start of the period 40 Cash and cash equivalents at the end of the period 60