During the year ended 30 June 2012 Middle plc sold for £78,000 a machine acquired for £200,000 and written down to £52,000. You are provided with an extract of the company’s Statement of income as shown. The non-current assets have been depreciated in the year by £28,000 and working capital changes in the year were as stated. The tax liability was reported as £39,000 on 30 June 2011 and as £52,000 on 30 June 2012.

Required: 

Identify the cash flow from operating activities in the year ended 30.6.2012.

Clue: operating profit stated in the extract includes the gain on machine disposal.

Transcribed Image Text:

Inventory increased by Receivables decreased by Payables increased by Accrued expenses increased by £18,000 £30,000 £21,000 £4,000