The following summarised balance sheets relate to Track Limited:

Additional information:

1. During the year to 30 June 20X1, some fixed assets originally costing £25,000 had been sold for £20,000 in cash. The accumulated depreciation on these fixed assets at 30 June 20X0 amounted to £10,000. Similarly, some of the investments originally costing £150,000 had been sold for cash at their book value.

2. The taxation balances disclosed in the above balance sheets represent the actual amounts agreed with the Inland Revenue. All taxes were paid on their due dates. Advance corporation tax may be ignored.

3. No interim dividend was paid during the year to 30 June 20X1.

4. During the year to 30 June 20X1, the company made a 1-for-2 rights issue of 250 ordinary £1 shares at 120p per share.

Required:

Prepare Track Ltd’s cash flow statement for the year to 30 June 20X1 in accordance with the requirements of FRS 1 using the indirect method. (Do not attempt to provide the reconciliation of net cash flow to net debt.)

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Fixed assets at cost Less Accumulated depreciation Investments at cost Current assets Stocks Debtors Cash and bank Current liabilities Bank overdraft Creditors Taxation Proposed dividend Balance Sheets at 30 June Capital and reserves Called-up share capital (£1 ordinary shares) Share premium account Profit and loss account 20X0 £000 500 200 300 200 400 1,350 100 1,850 (650) (230) (150) (1,030) 1,320 500 150 670 1,320 20X1 £000 650 300 350 50 700 1,550 2,250 (60) (790) (190) (130) (1,170) 1,480 750 200 530 1,480