Soldriction plc

So During the year ending 31 December year 4 a The company sold machinery, which had cost £12m, and on which £5m depreciation had been charged, for £3m.

b The company bought a number of manufacturing businesses in South Asia for £37m, of which £26m was for property, plant and equipment, and £11m for goodwill.

c Dividends paid were £5m.

d Interest of £3m and taxation of £4m were paid.

You are required to produce a cash flow statement for Soldriction plc for the year ended 31 December year 4.

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The summarized statement of financial position as at 31 December Year 3 Year 4 Non-current assets Em m Em Em Intangible assets 50 55 Machinery at cost 90 104 Provision for depreciation (30) 60 (44) 60 110 115 Current assets Inventories Receivables Cash Total assets 30 44 74 184 co to w 36 92 207 Current liabilities Trade payables 28 Overdraft 13 41 === 21 20 20 Non-current liabilities Debentures 38 Equity Share capital 90 90 Retained earnings 53 143 59 149 184 207