The statements of financial position of Axis plc as at 31 December 2017 and 2018 and the income statement for the year ended 31 December 2018 were as follows:

Notes:

1. During the year, plant (a non-current asset) costing £15 million and with accumulated depreciation of £10 million was sold.

2. The short-term investments were government securities, where there was little or no risk of loss of value.

3. The expense and the cash outflow for interest payable were equal.

4. During 2018 a dividend of £14 million was paid.

Required:

1. Prepare a statement of cash flows for Axis plc for the year ended 31 December 2018.

2. Prepare a reconciliation of liabilities from financing activities for the year ended 31 December 2018.

Transcribed Image Text:

Statements of financial position as at 31 December 2017 ASSETS Non-current assets Property, plant and equipment Land and building at cost Accumulated depreciation Plant and machinery at cost Accumulated depreciation Current assets Inventories Trade receivables Short-term investments Cash at bank and in hand Total assets EQUITY AND LIABILITIES Equity £m 130 (30) 70 (17) £m 100 53 153 25 16 41 194 £m 2018 130 (32) 80 (23) £m 98 57 155 24 26 12 7 69 224