Question 3

Roselion PLCs income statement for the year ended 31 December 2019 and the statements of financial position as of 31 December 2018 and 2019 are as follows:

Income statement for the year ended 31 December 2019

	m
Revenue		2623
Cost of sales		(1353)
Gross profit		1270
Distribution expenses		(71)
Rental income		27
Administrative expenses		(30)
Operating profit		1196
Interest payable		(26)
Profit before taxation		1170
Taxation		(36)
Profit for the year		1134

Statements of financial position on 31 December 2018 and 2019

ASSETS	m	2018	m	2019
Non-current assets
Property, plant and equipment
Land and buildings		1310		1310
Plant and machinery		1325		1314
		2635		2624
Current assets Inventories		541		535
Trade receivables		1139		1145
		1680		1680
Total assets		4315		4304
EQUITY AND LIABILITIES
Equity Called-up ordinary share capital		1200		1300
Share premium account		40		-
Revaluation reserve		69		9
Retained earnings		2123		2197
		3432		3506

Non-current liabilities
Borrowings - loan notes Current liabilities	750	650
Borrowings (all bank overdraft)	56	89
Trade payables	54	41
Taxation	23	18
	133	148
Total equity and liabilities	4315	4304

• During 2019, the business spent 67 million on additional plant and machinery. There were no other non-current asset acquisitions or disposals.
• There was no share issue for cash during the year. The interest payable expense was equal in amount to the cash outflow. A dividend of 60 million was paid.

A. Prepare the statement of cash flows for Roselion PLC for the year ended 31 December 2019. (10 marks)