Question:

1. Prepare a cash flow statement for Blackheath plc for the year ended 31^st December 2021. (13 marks)

Blackheath ple's Income Statement for the year ended 31 December 2021 and the Statements of Financial Position as at 31 December 2020 and 2021 are as follows: Income Statement for the year ended 31st December 2021 Revenue Cost of sales Gross profit Administrative expenses Operating profit Net interest payable Profit on ordinary activities before taxation Taxation Profit on ordinary activities after taxation m 3,240 (1,530) 1,710 (650) 1,060 (46) 1,014 (320) 694 Statement of Financial Position as at 31 December 2020 and 2021 2020 2021 m Em Non-current assets Land Plant and equipment 1,200 680 1,500 754 1,880 2,254 Current assets Inventories Trade receivables Cash and Cash equivalents 156 132 375 241 703 1,319 3,573 Total assets 288 2.168 Shareholders. equity and liabilities Capital and reserves Called up share capital Share premium account Retained earnings 1,150 320 274 1.744 1,350 460 818 2,628 430 Non-current liabilities Borrowings Current liabilities Overdraft Trade payables Tax payable 64 240 120 424 2.168 375 140 515 3,573 During 2021, the business spent 590m on additional non-current assets. There were no other non-current assets acquisitions or disposals. A dividend of 150m was paid on ordinary shares during the year