Question 7 (20)

The following information has been provided. You are required to prepare the statement of cash flows, for the period ending 30 June 2021.

The most recent statement of profit or loss and statements of financial position for the company are set out below.

The statement of profit or loss account for the period ending 30 June 2021

	$000
Continuing operations
Revenue	94,000
Cost of sales	(70,300)
Gross profit	23,700
Gain on disposal of PPE	453
Distribution costs	(8,720)
Administrative expenses	(13,640)
Profit from operations	1,793
Finance costs (Interest)	(1,140)
Profit before tax	653
Corporate tax	(845)
Loss for the year-continuing operations	(192)

Statements of financial position as at 30 June:

	2021 $000	2020 $000
Non-current assets
Property, plant and equipment	7,314	6,855
Current assets
Inventories	3,793	3,621
Trade receivables	6,159	5,056
Cash and cash equivalents	0	447
	9,952	9,124
Total assets	17,266	15,979
Equity and liabilities
Equity
Ordinary share capital	2,500	1,800
Share premium	600	460
Retained earnings	7,489	7,763
Total	10,586	10,023
Non-current liability
Debentures	1,000	1,200
	1,000	1,200
Current liabilities
Trade payables	4,579	4,026
Tax liability	845	730
Bank overdraft	256	0
	5,680	4,756
Total liabilities	6,680	5,956
Total equity and liabilities	17,266	15,979

Additional information:

1. Total depreciation charge for the year ending 30 June 2021 was $1,139,000.
2. PPE costing $435,000 which had an accumulated depreciation of $257,000 was sold in the year.
3. Sales and purchases were all made on credit, but other expenses were paid for in cash.
4. The dividend amounting to $85,000 was paid during the year.

Required to:

1. Prepare a reconciliation of profit before tax to net cash from operating activities for the period ending 30 June 2021.
2. Prepare the statement of cash flows for the year ended 31 March 20-1.