Alison runs an online gift shop, trading for cash with individual customers and offering trading on credit terms to businesses. Alison provides you with the following list of statement of financial position balances at 31 December 2018:

Alison provides you with the following additional information:

• During the year to 31 December 2019, Alison spent £8,000 on buying new computer equipment and £9,600 on new racks, shelving and office equipment as her business expanded.

• There were no disposals of non-current assets during the year.

Required

Using the statement of financial position at 31 December 2018 and the additional information provided, together with the answer to Question 3.2, prepare Alison’s statement of cash flows for the year ended 31 December 2019 using the indirect method.

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Non-current assets Computer equipment at cost Less: accumulated depreciation on computer equipment at 31 December 2018 Racks, shelving and office furniture at cost Less: accumulated depreciation on racks, shelving and office furniture at 31 December 2018 Current assets Inventory Trade receivables Rent prepayment Rates prepayment Cash and cash equivalents Total assets Current liabilities Trade payables Telephone, electricity and gas accruals Total liabilities Net assets Capital account 3 12,775 (7,245) 24,000 (8,000) 21,530 27,647 27,200 2,500 1,965 3,682 62,994 84,524 30,314 1,500 31,814 52,710 52,710