Vortex plc's statements of financial position at 31 December 2013 and 2014 are shown below.

Additional information:

• There were no disposals of machinery during the year ended 31 December 2014.

• There were no purchases of fixtures and fittings during the year ended 31 December 2014.

• Fixtures and fittings were disposed of during the year ended 31 December 2014. Depreciation of $5.3m had been charged on these assets; proceeds from the disposal amounted to $0.9m.

• The land and buildings were revalued on 31 March 2014.

• On 30 June 2014 the company made a bonus issue of three shares for every seven shares currently held. The bonus issue was financed in such a way as to maintain maximum dividend flexibility.

• Interest charges for the year ended 31 December 2014 totalled $3.9m.

• Dividends paid during the year ended 31 December 2014 totalled $28m.

Required

a. Prepare a journal entry to record the bonus issue of shares.

b. Calculate the profit before tax and interest for the year ended 31 December 2014.

c. Prepare a statement of cash flows for the year ended 31 December 2014.

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VORTEX plc Statements of financial position at 31 December 2014 2013 $m $m $m Sm Sm Sm Accumulated Accumulated Cost depreciation Net Cost depreciation Net Non-current assets Property plant and equipment Land and buildings 135.0 0.7 134.3 118.5 4.7 113.8 Machinery 212.0 85.0 127.0 192.0 74.0 118.0 Fixtures and fittings 62.0 27.0 35.0 68.0 26.0 42.0 409.0 112.7 296.3 378.5 104.7 273.8 Current assets Inventories 72.4 84.7 Trade and other receivables 100.3 93.2 Cash and cash equivalents 11.1 183.8 177.9 Total assets 480.1 451.7 Equity 400m ordinary shares of 50ç each 200.0 140.0 Share premium 21.0 Retained eamings 60.4 41.6 260.4 202.6 Non-current liabilities 6% debentures (2025) 48.0 61.0 Current liabilities Trade and other payables 68.6 59.8 Tax liablities 103.1 121.4 Cash and cash equivalents 6.9 171.7 188.1 Total equity and liabilities 480.1 451.7