Week 10 Tutorial Problem 1)

To complete the comprehensive exercise in the handout.

Problem 2) Textbook exercises

The following are the financial statements for Nailsea plc for the years ended 30 June 2008 and 2009. All amounts are in million pounds.

Revenues Operating expenses Depreciation Operating profit Interest payable Profit before taxation Taxation Profit for the year

Income statement for years ended 30 June 2010 1,230 (722) (270) 238 238 (110) 128 Statements of financial position as at 30 June 2008

2011 2,280 (1,618) (320) 342 (27) 315 (140) 175

2009

Assets Non-current assets: Land and buildings Plant and machinery Current assets: Inventories Trade receivables Bank Total assets Equity and liabilities Equity: Share capital ( 1 Par value) Share premium Reatined earnings

1,500 810 2,310 275 100 375 2,685

1,900 740 2,640 450 250 118 818 3,458

1,400 200 828 2,428

1,600 300 958 2,858

Non-current liabilities: Borrowings-9% Loan notes Current liabilities: Short term borrowings Trade payables Taxes payable Total equity and liabilities

300

32 170 55 257 2,685

230 70 300 3,458

Additional information: 1- There was no disposal of non-current assets in either year. 2- Dividends were paid in 2008 and 2009 of 40 million and 45 million, respectively. Required: Prepare a statement of cash flows for Nailsea plc for the year ended 30 June 2009 using the indirect method.