The following information is available in respect of Barn entity.
Statement of comprehensive income for the year ended 30 September 2007

The sale proceeds from the sale of non-current assets was £72m. All interest due has been received and the interest payable has been paid.
Required:
(a) Prepare the statement of cash flows for Barn entity for the year ended 30 September 2007in accordance with IAS 7, Cash Flow Statements. (Notes to the cash flow statement are not required.)
(b) Identify two limitations of a cash flow statement.

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Em Em Em 280 Gross profit Depreciation Interest receivable Interest payable Profit on sale of assets Impairment of intangibles Net profit before tax 60 (10) (16) 40 90 190 80 110 Net profit after tax Dividends paid and proposed Retained earnings Statements of financial position as at 30.9.07 Em 30.9.06 Assets Non-current assets Intangibles Property, plant and equipment 240 640 880 280 778 1 058 Current assets Inventory Trade receivables Cash and bank 68 60 48 128 236 1116 144 256 1314 Total assets Equity and liabilities Equity Ordinary share capital Share premium Retained earnings 500 600 60 192 732 200 882 240 Non-current liabilities Current liabilities Trade payables Dividends Tax 64 30 90 184 1 116 72 40 80 192 1314 Total equity and liabilities