The following information has been extracted from the books of Nimmo Limited for the year to 31 December 20X9:

Additional information:

1. The directors are extremely concerned about the large bank overdraft as at 31 December 20X9 and they attribute this mainly to the increase in trade debtors as a result of alleged poor credit control.

2. During the year to 31 December 20X9, fixed assets originally costing £5,500,000 were sold for £1,000,000. The accumulated depreciation on these assets as at 31 December 20X8 was £3,800,000.

Required:

Prepare a cash flow statement for the year to 31 December 20X9.

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Profit and Loss Accounts for year to 31 December Profit before taxation Taxation Profit after taxation Dividends: Preference (paid) Ordinary: interim (paid) final (proposed) Retained profit for the year 20X8 £000 9,500 (3,200) 6,300 (100) (1,000) (3,000) 2,200 20X9 £000 20,400 (5,200) 15,200 (100) ( 2,000) (6,000) 7,100