The following summarised balance sheets relate to Track Limited: Additional information: 1. During the year to 30 June 20X1, some
The following summarised balance sheets relate to Track Limited:
1. During the year to 30 June 20X1, some fixed assets originally costing £25,000 had been sold for £20,000 in cash. The accumulated depreciation on these fixed assets at 30 June 20X0 amounted to £10,000. Similarly, some of the investments originally costing £150,000 had been sold for cash at their book value.
2. The taxation balances disclosed in the above balance sheets represent the actual amounts agreed with the Inland Revenue. All taxes were paid on their due dates. Advance corporation tax may be ignored.
3. No interim dividend was paid during the year to 30 June 20X1.
4. During the year to 30 June 20X1, the company made a 1-for-2 rights issue of 250 ordinary £1 shares at 120p per share.
Prepare Track Ltd’s cash flow statement for the year to 30 June 20X1 in accordance with the requirements of FRS 1 using the indirect method. (Do not attempt to provide the reconciliation of net cash flow to net debt.)
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