The following statements of financial positions have been prepared for Frank Limited. 

Additional information:

There were no purchases or sales of plant and machinery during the year.

Required:

(a) Prepare Frank Limited’s statement of cash flows for the year ended 28 February 2017.

(b) What does it tell the managers of Frank Limited? 

Transcribed Image Text:

Statement of financial positions at: Non-current assets Plant and machinery at cost Less: Depreciation Investments at cost Current assets Inventory Trade receivables Cash Capital and reserves Ordinary share capital Share premium account Retained earnings Shareholders' funds Non-current liabilities Loans Current liabilities Trade payables 200 e/f 28.2.16 £000 300 (80) 160 220 300 50 30 - £000 220 380 600 380 200 580 28.2.17 £000 300 (100) 190 110 10 300 50 40 £000 200 100 310 610 390 60 160 610