Below are extracts from the financial statements of Poochie Ltd:

Statement of profit or loss for the year ended 31 March 2021

$
Revenue 30,650
Cost of sales (26,000)
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Gross profit 4,650
Distribution costs (900)
Administrative expenses (500)
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Profit from operations 3,250
Investment income 680
Finance costs (400)
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Profit before tax 3,530
Income tax expense (300)
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Profit for the period 3,230
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Statements of financial position
31 March 2021 31 March 2020
$ $ $ $
Assets
Non-current assets
Property, plant and equipment 2,280 850
Investments 2,500 2,500
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4,780 3,350
Current assets
Inventories 1,000 1,950
Trade and other receivables 1,900 1,200
Cash and cash equivalents 410 160
––––– –––––
3,310 3,310
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Total assets 8,090 6,660
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Equity and liabilities
Capital and reserves
Share capital 1,000 900
Share premium 500 350
Retained earnings 3,410 1,300
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4,910 2,630
Non-current liabilities
Long term borrowings(including leases) 2,300 1,040
Current liabilities
Trade and other payables 250 1,890
Interest payable 230 100
Taxation 400 1,000
––––– –––––
880 2,990
––––– –––––
Total equity and liabilities 8,090 6,660
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Additional information:

I. Profit from operations is after charging depreciation on the property, plant and equipment of
$450.
II. During the year ended 31 March 2021, plant and machinery costing $80 and with accumulated
depreciation of $60, was sold for $20.
III. During the year ended 31 March 2021, the company acquired property, plant and equipment
costing $1,900, of which $900 was acquired by means of lease. Cash payments of $1,000 were
made to purchase property, plant and equipment.
IV. $90 was paid under the lease.
V. The receivables at the end of 2021 include $100 of interest receivable. There was no equivalent
balance at the beginning of the year.
VI. Investment income of $680 is made up of $300 interest receivable and $380 dividends received.
VII. Dividends paid during the year were $1,200.

Required:

Prepare a statement of cash flows for Poochie Ltd for the year ended 31 March 2021 in compliance with
IAS 7 Statement of Cash Flows.