One of your assistants is having difficulties preparing the Statement of cash flows for a client, Mercibo plc and needs your assistance. They have provided the following information.

Extracts from financial statements for the year ended 31 December 20X3

Requirement

1. Using the pro-forma provided in the pro-forma financial statements, prepare the Net cash flow from operating activities section of Mercibo plcs Statement of cash flows for the year ended 31 December 20X3. 12 marks*

2. Calculate Mercibos net cash flow from financing activities for the year ended 31 December 20X3. 8 marks

Statement of financial position as at 31 December 20X3 20X3 20X2 Non-current assets Property, plant and equipment 597,600 520,190 Current assets Inventory Trade receivables Bank 41,889 56,397 41,558 43,907 14,275 5,314 97,722 105,618 695,322 625,808 Total assets Equity Share capital Share premium Revaluation reserve Retained earnings 150,000 120,000 35,000 25,000 80,000 50,000 250,126 293,216 515,126 488,216 Non-current liabilities Loan stock 80,000 45,000 Current liabilities Trade payables Provision Income tax 50,796 46,992 2,000 47,400 45,600 695,322 625,808 Statement of profit or loss for the year ended 31 December 20X3 Operating profit 230,166 Loss on disposal of PPE (3,150) Finance cost (2.200) Profit before tax 224,816 Income tax (42,000) Profit for the year 182,816 Depreciation included in Operating profit 46,230