The Homer Double Glazing Company plc's balance sheets as at 31 December 19-1 and 19-2, and the

profit and loss account for the year to 31 December 19-2 are as follows:

as at 31 December 19-2

000

000

as at 31 December 19-1

000

000 Fixed assets:

Freehold property at valuation 1,000 850

Plant and machinery at cost 780 695

less provision for depreciation 320 460 280 415

Motor vehicles at cost 400 332

less provision for depreciation 185 215 170 162

Office computer equipment at cost 60 55

less provision for depreciation 30 30 28 27

1,705 1,454

Current assets:

Stocks 250 222

Debtors 102 107

Short term investments 300 -

Cash at bank 54 75

706 404

Creditors: amounts due within one year

Trade creditors (45) ( 68 )

Taxation (140) (86)

Proposed dividends (120) (100)

Net current assets 401 150

Total assets less current liabilities 2,106 1,604

Creditors: amounts falling due

after more than one year

10% Debenture stock (100) (150)

2,006 1,454

Capital and reserves

Issued share capital 1,000 600

Share premium 30 210

Freehold property revaluation reserve 150 -

Asset replacement reserve 250 200

General reserve 400 300

Retained profit 176 144

2,006 1,454

Profit and loss account (extract) for the year to 31 December 19-2

000 000

Profit before tax 494

Taxation (132)

Profit after tax 362

Transfer to asset replacement reserve ( 50 )

Transfer to general reserve (100)

Dividends paid and proposed (180) (330)

Retained profit for the year 32

Retained profit brought forward from 31 December 19-1 144

176

Notes

1. During the year to 31 December 19-2 the following transactions took place:

(i) Plant and machinery which cost 120,000 and on which depreciation of 95,000 had been provided,

was sold for 22,000

(ii) Motor vehicles which had cost 85,000 and which had a written down value of 15,000 at the

date of sale were sold for 28,000.

(iii) Office computer equipment which had cost 10,000 and on which depredation of 5,000 had

been provided was sold at a loss of 2,000.

2. During the year to 31 December 19-2 a bonus issue of shares was made on the basis of one

bonus share for every three shares already held. This was done by using part of the share

premium account. The company then made a rights issue on the basis of one share for each four

held, the new shares being offered at a premium of 10p on each share.

3 There had been no additions to freehold property during the year to 31 December 19-2.

4. The 10% debenture stock is redeemable at par. The debenture stock redemption took place on 1

January 19-2

5. The short term investments are immediately realisable.

Required

A cash flow statement for the year to 31 December 19-2 for The Homer Double Glazing Company

plc.