The statements of financial position for Potters Limited, together with relevant notes, are given below. Potters Limited produces crockery for sale to shops and through its site on the internet.

Potters Limited: statements of financial position at 30 June 2019 and 30 June 2018

During the year to 30 June 2019:

• Potters Limited paid £2,500,000 to acquire new property, plant and equipment

• Depreciation of £800,000 was charged on property, plant and equipment

• Plant and equipment with a carrying amount of £100,000 was sold for £150,000

• £20,000 amortization was charged on the trademarks

• Dividends of £100,000 were paid

• Taxation of £275,000 was paid

• £200,000 interest was paid on the long-term borrowings

• Operating profit for the year was £845,000

• 200,000 new ordinary shares were issued for cash at a price of £2.75 each

• Potters Limited received no interest during the year to 30 June 2019

Required

Prepare the statement of cash flows for Potters Limited for the year ended 30 June 2019 using the indirect method.

Transcribed Image Text:

Assets Non-current assets Intangible assets: trademarks Property, plant and equipment Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets Liabilities Current liabilities Trade and other payables Current tax liabilities Non-current liabilities Long-term borrowings Total liabilities Net assets 2019 £000 100 10,200 10,300 1,000 1,800 200 3,000 13,300 1,200 300 1,500 3,200 4,700 8,600 2018 £000 120 8,600 8,720 1,100 1,550 310 2,960 11,680 1,000 250 1,250 2,600 3,850 7,830