Cashington plc provided the following information for the year ended 31 March 2018.

Income Statement for the year ended 31 March 2018
£’000
Revenue	24,470
Cost of sales	(13,744)
Gross profit	10,726
Dividends received	1,300
Gain on disposal of non-current asset	990
Distribution costs	(4,676)
Administrative expenses		(2,748)
Profit from operations	5,592
Finance costs	(600)
Profit before tax	4,992
Tax	(1,164)
Profit for the year attributable to equity holders	3,828
Statement of Financial Position at 31 March
2018 £’000		2017 £’000
PPE at net book value	39,070		25,018
Current Assets
Inventories	5,476		2,918
Trade and other receivables	2,524		2,716
Cash and cash equivalents	928
Total assets	47,998		30,652
Equity
Ordinary shares (£1)	9,000		6,000
Share premium	4,000		3,000
Retained earnings	20,504		18,676
33,504		27,676
Non-Current liabilities
5% debentures (2025)	12,400
Current liabilities
Trade and other payables	1,470		1,798
Current tax liabilities	624		1,018
Bank overdraft	160
Total equity and liabilities	47,998		30,652
Additional information: During the year the company made a one for three bonus issue and then issued some new shares. A final dividend of £0.40 per share was proposed at the year end. In January 2018, plant costing £800,000 was sold. The accumulated depreciation on this plant was £525,000. The total depreciation charge for the year was £880,000. Required: Prepare a statement of cash flows for the year ended 31 March 2018 in accordance with IAS7. Comment on the movements in cashflow for the year.

Answer rating: 100% (QA)

Requirement A Cashington Plc Statement of Cash Flows Indirect Method Year Ended MArch 31 2018 Cash f... View the full answer