The following are the financial statements of Ramsey Sports and Outdoors Ltd at 30 June 2021:

Ramsey Sports and Outdoors Ltd
Statement of Financial Position
as at 30 June 2021
	2021	2020
	000s	000s
Current assets
Cash at bank	$ 2,000.00	$ 24,000.00
Trade debtors	$ 8,800.00	$ 13,000.00
Inventories	$ 15,000.00	$ 18,000.00
Prepayments	$ 700.00	$ 400.00
Total current assets	$ 26,500.00	$ 55,400.00
Non-current assets
Machinery	$ 63,000.00	$ 58,300.00
Accumulated depreciation - machinery	-$ 12,000.00	-$ 13,000.00
Buildings	$ 60,000.00	$ 30,000.00
Total non-current assets	$ 111,000.00	$ 75,300.00
Total assets	$ 137,500.00	$ 130,700.00
Current liabilities
Creditors	$ 14,000.00	$ 13,000.00
Accrued expenses	$ 1,300.00	$ 1,700.00
Income tax payable	$ 4,200.00	$ 6,000.00
Final dividend payable	$ 10,000.00	$ 8,000.00
Total current liabilities	$ 29,500.00	$ 28,700.00
Non-current liabilities
Mortgage	$ 30,000.00	$ 60,000.00
Total non-current liabilities	$ 30,000.00	$ 60,000.00
Total liabilities	$ 59,500.00	$ 88,700.00
Net assets	$ 78,000.00	$ 42,000.00
Shareholders' equity
Share capital	$ 70,000.00	$ 30,000.00
Revaluation surplus	$ 3,000.00	-
General reserve	-	$ 10,000.00
Retained earnings	$ 5,000.00	$ 2,000.00
Total shareholders' equity	$ 78,000.00	$ 42,000.00

Additional Information

i During the year 10 000 shares were issued in exchange for a building valued at $15 million. There was also a bonus share issue and an issue of shares for cash

2. A building was revalued during the year. A further building was purchased for cash during the year.
3. Machinery was traded in for new machinery during the year. The machinery traded in had an original cost of $18 million. No other sale or purchase of machinery occurred during the year.

Required:

1. Complete the cash flow statement for the year ended 30 June 2021. Use the Excel templates
2. The statement of cash flows provides useful information to managers that enables them to make informed decisions. The statement of financial performance may show an accrual profit, however, an accrual profit doesnt necessarily mean the entity has adequate cash flow to remain solvent. The operating section of the cash flow statement provides managers with information about the principle revenue-producing activities of the entity. Negative cash flows from operating activities is particularly concerning Identify and explain five (5) decisions management could make to improve cash flows from operating activities.

Ramsey Sports and Outdoors Ltd Statement of Financial Performance for the year ended 30 June 2021 '000s Sales $ 160,000.00 Less Cost of goods sold $ 105,000.00 Gross profit $ 55,000.00 Add other revenues Gain on trade-in of motor vehicle $ $ 5,000.00 60,000.00 Less other expenses Depreciation - motor vehicle Other expenses Total expenses $ $ 6,000.00 34,000.00 40,000.00 Profit before tax Less Income tax expense Profit after tax $ $ $ tal 20,000.00 4,000.00 16,000.00 Note '000s Retained earnings at beginning of year $ 2,000.00 Net Profit $ 16,000.00 Transfer from general reserve $ 10,000.00 Bonus issue of shares -$ 10,000.00 Dividends paid or declared -$ 13,000.00 $ 5,000.00 Retained earnings at the end of the year Ramsey Sports and Outdoors Ltd Statement of Financial Performance for the year ended 30 June 2021 '000s Sales $ 160,000.00 Less Cost of goods sold $ 105,000.00 Gross profit $ 55,000.00 Add other revenues Gain on trade-in of motor vehicle $ $ 5,000.00 60,000.00 Less other expenses Depreciation - motor vehicle Other expenses Total expenses $ $ 6,000.00 34,000.00 40,000.00 Profit before tax Less Income tax expense Profit after tax $ $ $ tal 20,000.00 4,000.00 16,000.00 Note '000s Retained earnings at beginning of year $ 2,000.00 Net Profit $ 16,000.00 Transfer from general reserve $ 10,000.00 Bonus issue of shares -$ 10,000.00 Dividends paid or declared -$ 13,000.00 $ 5,000.00 Retained earnings at the end of the year