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.
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.