The following information is available on the financial statements of Tulip PLC for 31/12/2020 and 31/12/2021. The net profit for 31/12/2021 is £10,000. Tulip PLC Statements

Tulip PLC Statements of Financial Position
	31/12/2020	31/12/2021
	£ 000	£ 000
Non current assets
investment	0	100
Machinery at cost	300	300
Less depreciation	-80	-100
	220	300
Current assets
Inventory	160	190
Trade receivable	220	110
Cash at bank	0	10
	380	310
Total assets	600	610
Equity
Share capital	350	350
Retained earning	30	40
	380	390
Non current liabilities
Borrowing (9% loans)	0	60
Current liabilities
Bank overdraft	20	0
Trade payable	200	160
Taxation	0	0
	220	160
Total equity and liabilities	600	610

Required:

a) Prepare the statement of cash flows for Tulip PLC for 31/12/2021.

b) Discuss what the cash flow statement tells the managers of Tulip PLC?