The following are the financial statements of Riddle plc for the last two years:

Statement of comprehensive income for the year ended 31 March 20X9

Required:

(a) Prepare the statement of cash flows for Riddle plc for the year ended 31 March 20X9 and show the operating cash flows using the ‘indirect method’.

(b) Calculate the cash generated from operations using the ‘directmethod’.

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20X8 20X9 $000 $000 $000 $000 Non-current assets Property, plant and equipment, at cost Less accumulated depreciation 540 720 (145) (190) 395 530 115 Investments 140 Current assets: Inventory 315 418 Trade receivables 412 438 Bank 48 775 51 907 Total assets 1,285 1,577 Capital and reserves: Ordinary shares Share premium Retained earnings 600 800 40 55 217 857 311 1,166 Non-current liabilities 1 2% debentures 250 200 Current liabilities: Trade payables 139 166 Taxation 39 178 45 211 Total equity and liabilities 1,285 1,577