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Part A Statements of financial position for Thunder Limited at 31 December 2019 and 31 December 2018 together with extracts from the statement of profit
Part A Statements of financial position for Thunder Limited at 31 December 2019 and 31 December 2018 together with extracts from the statement of profit or loss for the year ended 31 December 2019 and relevant notes are presented below. 2019 000 2018 000 Assets Non-current assets Intangible assets: patents 450 Property, plant and equipment 19,577 12,886 Investments 1,244 739 21,271 13,625 Current assets Inventory 2,385 2,650 Trade and other receivables 5,423 4,976 Cash and cash equivalents 1,542 7,808 9,168 Total assets 29,079 22,793 Current liabilities Borrowings 150 Trade and other payables 6,479 5,943 Current taxation 1,600 8,229 5,943 Non-current liabilities Borrowings Provisions 2,000 7,000 600 500 2,600 7,500 Total liabilities 10,829 13,443 18,250 9,350 Net assets Equity Share capital 2,000 1,500 Share premium 4,000 2,000 Retained earnings 12,250 5,850 18,250 9,350 Thunder Limited: statement of profit or loss (extract) for the year ended 31 December 2019 Operating profit Finance income Finance expense Profit before tax Income tax 000 8,427 432 859 8,000 1,600 6,400 Profit for the year Notes to the financial statements On 1 July 2019, Thunder Limited paid 500,000 to acquire new patents. Patents are amortised on a straight line basis over five years. Thunder Limited's share capital is made up of ordinary shares with a par value of 50 pence per share. On 1 October 2019, Thunder Limited issued 1 million ordinary shares at a premium of 2 per share for cash. Trade and other receivables at 31 December 2018 include income tax recoverable of 600,000. This income tax recoverable was repaid to Thunder Limited by the tax authorities on 31 March 2019. Property, plant and equipment that had cost 150,000 and which had a carrying amount of 25,000 was sold for 35,000 on 1 October 2019. Depreciation charged on property, plant and equipment during the year to 31 December 2019 amounted to 4,074,000. The cost of new property, plant and equipment purchased during the year was 10,790,000. Borrowings shown under current liabilities are made up of the bank overdraft at 31 December 2019. Required: Prepare the statement of cash flows for Thunder Limited for the year ended 31 December 2019 using the indirect method
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