The following information relates to a supply-financed department.

	31/03/X9	31/03/X8
Non-current assets	£ 000	£ 000
Property, plant, and equipment	2 352	2 467
Software licenses	210	280
Financial assets	225	0
	2 787	2 747
Current assets
Receivables	184	311
Cash	975	89
Current liabilities	(443)	(271)
Non-current liabilities
National Loans Fund	(150)	0
Net assets	3 353	2 876
Taxpayers’ equity
General fund	1 953	1 356
Revaluation reserve	1 400	1 520
Total taxpayers’ equity	3 353	2 876

Additional information for 20X8/X9:

1. The balance on the Parliamentary financing account for the year totalled £3 981 000. Of this £213 000 related to deemed supply.
2. The Department exceeded its net cash requirement for the year by £78 000.
3. Operating costs for the year included a notional audit fee of £29 000. Depreciation and amortization charged for the year totaled £253 000.

4. There was only one non-current asset disposal in the year, relating to a building with a net book value at the date of sale of £216 000. A profit of £84 000 was made on disposal. The asset had previously been revalued and realized gains were transferred from the revaluation reserve to the general fund during the year.
5. Indexation, net of backlog depreciation, for the year was £54 000.
6. The financial asset refers to two loans made during the year. The first loan was made to a partner agency. The loan was supported by the National Loans Fund and was for £160 000. A repayment of £10 000 was received and has not yet been passed to the National Loans Fund. The second loan was for £90 000 and was made from the Department's own resources and a repayment of £15 000 was received during the year. No interest was charged on this loan.

Prepare the statement of cash flows for the year ended 31 March 20X9 using the below template.

Cash flows from operating activities:
Net cash inflow/(outflow) from operating activities
Cash flows from investing activities:
Net cash inflow/(outflow) from investing activities
Net cash inflow/(outflow) before financing
Cash flows from financing activities:
Net cash inflow/(outflow) from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 31 March 20X8
Cash and cash equivalents at 31 March 20X9

Answer rating: 100% (QA)

Cash flows from operating activities Net cash inflow from operating activities Depreciation and amortization charged for the year totaled 253 000 Oper... View the full answer