Repeat question 14.5A, this time following the requirements of IAS 7.

Data from Question 14.5A

The balance sheets and additional information relating to Pennylane Ltd are given below. 

Prepare a cash flow statement for Pennylane Ltd for the year ended 31 December 20X3 as required under FRS 1 using the indirect method, together with Note 1 to the statement. (Do not attempt to provide the reconciliation of net cash flow to net debt.)

Additional information:

(a) During the year interest of £75,000 was paid, and interest of £25,000 was received.

(b) The following information relates to tangible fixed assets.

(c) The proceeds of the sale of fixed asset investments were £30,000.

(d) Plant, with an original cost of £90,000 and a net book value of £50,000, was sold for £37,000.

(e) Tax paid to the Inland Revenue during 20X3 amounted to £110,000.

(f) Dividends of £80,000 were paid during 20X3.

Data from IAS 7

IAS 7 seeks similar information to that required by FRS 1, but its requirements are considerably less detailed. In place of nine cash flow category headings, IAS 7 has only three:

1. Operating activities;

2. Investing activities; and

3. Financing activities.

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Fixed assets Tangible assets Intangible assets Investments Current assets Stocks Debtors 90-day deposit Cash in hand Pennylane Ltd Balance Sheets as at 31 December Creditors: amounts falling due within one year Trade creditors Bank overdraft Taxation Net current assets Total assets less current liabilities 20X3 £000 400 230 630 120 400 50 10 580 122 188 120 430 150 780 20X2 £000 325 180 25 530 104 295 403 108 185 110 403 530