Question 4 R Ltds Balance Sheets at 30 June 2003 and 2004 were as follows.

At 30 June 2003

At 30 June 2004

$000 $000

$000 $000 $000 $000

Tangible fixed assets (note 1)

630

850

Current assets

Stock

41

54

Debtors

36

30

Bank

87

103

164

187

Creditors: amounts due within one year

Creditors

29

41

Proposed dividend

25 54

35

76

Net current assets

110

111

Total assets less current liabilities

740

961

Creditors: amounts due after one year

10% Debentures 2002 2005

100

60

640

901

Capital and reserves

Ordinary shares of $1 fully paid

500

700

Share premium

25

50

General reserve

100

120

Retained profit

15

31

640

901

Notes

1. Tangible fixed assets

Freehold

Plant and Motor

Total

property

machinery vehicles

$000

$000

$000

$000

At cost

At 30 June 2003 1 000

230

140

1 370

Additions

302

250

552

Disposals

(35)

(85)

(120)

At 30 June 2004 1 000

497

305

1 802

Provisions for depreciation

At 30 June 2003 540

120

80

740

Depreciation on disposals

(30)

(78)

(108)

Depreciation for the year

50

200

70

320

At 30 June 2004 590

290

72

952

Net book values at

30 June 2004 410

207

233

850

2. Proceeds from the sales of fixed assets were:

$000

Plant and machinery 10

Motor vehicles 5

200 000 ordinary shares of $1 were issued on 1 July 2003 at a premium of $0.125 per share.

An interim dividend of $0.03 per share was paid on 1 November 2003.

The directors propose to pay a final dividend of $0.05 per share for the year ended 30 June 2004 on 1 January 2005.

$40 000 of debentures were redeemed at par on 31 December 2003.

Interest on the debentures is paid each year on 30 June and 31 December.

REQUIRED

(a) Prepare cash flow statement