ADDITIONAL CASE K17409 - CFS

Extracts from the financial statements for Roxy plc for the years ended 30 June are as follows:
Statements of financial position as at 30 June
20X8 20X7
£ £ £ £
ASSETS
Non-current assets
Property, plant and equipment 20,750 14,000

Current assets
Inventories 16,000 11,000
Trade and other receivables 9,950 2,700
Government bonds 1,000 1,300
26,950 15,000
Total assets 47,700 29,000
EQUITY AND LIABILITIES
Equity
Ordinary share capital 3,500 3,000
Retained earnings 13,950 3,800
17,450 6,800
Non-current liabilities
Loans 6,000 10,000
Current liabilities
Bank overdrafts 12,000 –
Trade and other payables 8,000 11,000
Accruals 700 200
Provision 1,750 –
Tax liabilities 1,800 1,000
24,250 12,200
47,700 29,000
Statements of profit or loss for the year ended 30 June (extracts)
20X8 20X7
£ £
Profit from operations 13,650 5,900
Finance cost (1,000) (1,400)
Profit before tax 12,650 4,500
Income tax expense (2,000) (1,500)
Profit for the year 10,650 3,000
Additional information
(1) An analysis of property, plant and equipment shows the following.
20X8 20X7
£ £ £ £
Building
Cost 22,000 12,000
Depreciation (4,000) (1,000)
18,000 11,000
Plant and machinery
Cost 5,000 5,000
Depreciation (2,250) (2,000)
2,750 3,000
20,750 14,000
(2) Machinery with a carrying amount of £250 was sold at the beginning of 20X8 for £350. This
machinery had originally cost £1,000.
(3) The accruals are in respect of interest payable.
(4) During the year a bonus issue of 1 for 6 was made on the ordinary shares in issue at
30 June 20X7, utilising retained profits.
(5) The government bonds are highly liquid and management has decided to classify them as cash
equivalents.
(6) Included in trade payables at 30 June 20X8 is £2,500 in respect of the purchase of non-current
assets.
(7) The provision relates to a former employee's unfair dismissal claim.
Requirement
Prepare a statement of cash flows for the year ended 30 June 20X8 in accordance with IAS 7, Statement
of Cash Flows.