QUESTION 4 The following information has been extracted from the financial statements of Salsa plc for the year ended 30 April 2021, together with comparative statement of financial position figures for the previous year. 2021 '000 2020 '000 Note '000 '000 Non-current assets Tangible assets 1 2,378 1,906 Current assets Inventories Trade receivables Cash and bank balances 968 2,708 800 4,476 880 2,570 768 4,218 Current liabilities Trade payables Corporation tax (1,854) (214) 2,408 (1,700) (204) 2,314 Non-current liabilities 9% debentures (1,108) 3,678 (1,182) 3,038 180 Share capital and reserves Ordinary shares Share premium Revaluation reserve Retained profits 210 70 300 3,098 3,678 2,858 3,038 Statement of Profit or Loss for the Year Ended 30 April 2021 Note 2 Profit from operations Interest revenue Interest expense Profit before taxation Tax expense Profit for the year '000 694 22 (100) 616 (278) 338 Note to the financial statements (1) Property, plant and equipment Total Land and buildings '000 Plant and machinery '000 '000 1,164 148 1,810 508 Cost: At 1 May 2020 Additions Revaluation Disposals At 30 April 2021 300 2,974 656 300 (560) 3,370 (136) 1,476 (424) 1,894 Depreciation : At 1 May 2020 Eliminated on disposals Charge for the year At 30 April 2021 258 (36) 48 270 810 (218) 130 722 1,068 (254) 178 992 Net book value : At 1 May 2020 At 30 April 2021 906 1,206 1,000 1,172 1,906 2,378 Proceeds received from the disposal of property, plant and machinery were as follows: '000 Land and buildings 150 Plant and machinery 190 (2) Profit from operations This includes profits and losses arising from the disposals of property, plant and machinery. (3) Dividends Total dividends paid amounted to 98,000. REQUIRED: (a) Prepare the statement of cash flows for Salsa Plc for the year ended 30 April 2021. [15] (b) Comment on the cash flow of Salsa Plc for the year 2021. [10] (25 marks)