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The dividend paid during Year 2 was £25m. The retained earnings increased by £77m profit

The dividend paid during Year 2 was £25m. The retained earnings increased by £77m profit

 The dividend paid during Year 2 was £25m. The retained earnings increased by £77m profit of the period and decreased by the amount of the dividend, £25m.

2 During Year 2 the company acquired property, plant and equipment costing £94m.

3 During Year 2 the company sold for scrap property, plant and equipment that had an original cost of £19m and accumulated depreciation of £9m. The proceeds of disposal were £2m.

4 Investments were sold during the year for cash proceeds of £30m. There were no purchases of investments.

 

Required:

1 Prepare a statement of cash flows using (a) the direct method or (b) the indirect method of calculating operating cash flow.

2 Write a comment on the cash flow of the period.

Tripti 05-Dec-2019

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