Total mark 0
As at 30 June 20X7 and 30 June 20X8 Middlesex plc had the following summarised statements of financial position.
20X8 20X7
£ £ £ £
ASSETS
Non-current assets
Property, plant and equipment 321,000 299,000
Less Depreciation (70,000) (69,000)
251,000 230,000
Investment 50,000 –
301,000 230,000
Current assets
Inventories 12,000 11,000
Trade and other receivables 29,000 27,000
Cash and cash equivalents 20,000 10,000
61,000 48,000
Total assets 362,000 278,000
EQUITY AND LIABILITIES
Equity
Ordinary share capital (£1 shares) 95,000 50,000
Share premium 15,000 10,000
Retained earnings 144,000 115,000
254,000 175,000
Non-current liabilities
12% loan notes repayable in 10 years 50,000 60,000
Current liabilities
Provisions – 2,000
Trade and other payables 32,000 19,000
Tax liabilities 7,000 3,000
Accruals 19,000 19,000
58,000 43,000
Total equity and liabilities 362,000 278,000
Additional information
You are also given the following information which is already reflected correctly in the accounts.
(1) During the year a bonus issue of 1 for 10 was made on the ordinary shares in issue at 30 June 20X7, utilising retained pro
(2) New shares were issued on 1 July 20X7. Part of the proceeds were used to redeem £10,000 12% loan notes at par.
(3) During the year certain tangible non-current assets were disposed of for £20,000. The assets had originally cost £40,000 a
(4) Trade and other payables include £5,000 for 20X8 relating to the purchase of non-current assets.
(5) The income tax charge in the statement of profit or loss for the year is £7,000.
(6) Included in accruals at 30 June 20X8 is £2,500 which relates to interest payable. The corresponding figure for 20X7 was £
(7) Middlesex plc paid an ordinary dividend of £5,000 on 28 June 20X8 for the year ended 30 June 20X8.
(8) Included in trade receivables is £10,000 in relation to the disposal of non-current assets.
Requirement
Prepare a statement of cash flows for the year ended 30 June 20X8 in accordance with IAS 7.
Middlesex plc
Statement of cash flows for the year ended 30 June 20X8
£
Cash flows from operating activities
Profit before tax
Finance costs
Depreciation
Gain / loss on sale of property, plant and equipment
Gain / loss on sale of intangible assets
Movement in inventories
Movement in trade receivables
Movement in trade payables
Movement in accruals
Movement in provisions
Cash generated from operations
Income tax paid
Interest paid
Net cash from / used in operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of investments
Proceeds from sale of property, plant and equipment
Net cash from / used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Dividends paid
Movement in borrowings
Net cash from / used in financing activities
Net increase / decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
of financial position.
une 20X7, utilising retained profits.
00 12% loan notes at par.
ets had originally cost £40,000 and had a carrying amount at the disposal date of £18,000.
sponding figure for 20X7 was £2,750.
