Prepare a cash flow statement for the year to 30th June Year 2 from the following information relative to Strong Ltd Profit Loss Account for year ended 30 June Year 2 Trading Profit 20000 Deprecation 4000 16000 Corporation Tax 4000 12000 Profit Brought Forward 20000 32000 Dividend Paid 4000 Transfe...

All the amounts are in cash flow statement for the year to 30th June Year 2 Cash Flow fr ...

Prepare a cash flow statement for the year to 30th June Year 2 from the following information

Question:

Prepare a cash flow statement for the year to 30th June Year 2 from the following information relative to Strong Ltd.

Profit & Loss Account for year ended 30 June Year 2

	£	£
Trading Profit		20000
Deprecation		4000
		16000
Corporation Tax		4000
		12000
Profit Brought Forward		20000
		32000
Dividend Paid	4000
Transfer to General Reserve	2000
		£26,000

NOTES:
1) The dividend paid relates to Year 2
2) Movement in fixed assets:

	Cost	Depreciation	Net Book Value
	£	£	£
Balance at
1 July Year 1	50000	10000	40000
Acquisition	8000		8000
	58000	10000	48000
Depreciation for Year		4000	4000
	£58,000	£14,000	£44,000

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...