The following is a summary of Gregory Limited's accounts for the year ended 30 April 2010.

Profit and loss account for the year ended 30 April 2010

£000

Net profit before tax ...............75

Taxation ....................25

50

Dividend (proposed) ................40

Retained profit for the year ............10

Additional information:
There were no sales of fixed assets during the year ended 30 April 2010.

Required:
(a) Prepare Gregory Limited's cash flow statement for the year ended 30 April 2010.
(b) Outline what it tells the managers of GregoryLimited.

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Balance sheet at 30 April 2010 30.4.09 30.4.10 £000 5000 £000 Fixed assets Plant at cost Less: Depreciation 550 180 370 370 400 100 clf 300 300 Current assets Stocks Debtors Bank 50 90 50 10 130 142 Less Current liabilities Creditors Taxation Proposed dividend 45 18 35 98 25 40 120 32 332 392 Capital and reserves Ordinary share capital Profit and loss account 200 132 332 200 142 342 332 392