Chen plc”s income statements for the years ended 31 December 2009 and 2010 and the statements of financial position as at 31 December 2009 and 2010 are as follows:
|
Income statements for the years ended 31 December 2009 and 2010 |
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|
2009 |
2010 |
|
|
£m |
£m |
|
|
Revenue |
207 |
153 |
|
Cost of sales |
(101) |
(76) |
|
Gross profit |
106 |
77 |
|
Distribution expenses |
(22) |
(20) |
|
Administrative expenses |
(20) |
(28) |
|
Operating profit |
64 |
29 |
|
Interest payable |
(4) |
(4) |
|
Profit before taxation |
60 |
25 |
|
Taxation |
(16) |
(6) |
|
Profit for the year |
44 |
19 |
|
Statements of financial position as at 31 December 2009 and 2010 |
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|
2009 |
2010 |
|
|
£m |
£m |
|
|
ASSETS |
||
|
Non-current assets |
||
|
Property, plant and equipment |
||
|
Land and buildings |
110 |
130 |
|
Plant and machinery |
62 |
56 |
|
172 |
186 |
|
|
Current assets |
||
|
Inventories |
24 |
25 |
|
Trade receivables |
26 |
25 |
|
Cash at bank and in hand |
19 |
– |
|
69 |
50 |
|
|
Total assets |
241 |
236 |
|
EQUITY AND LIABILITIES |
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|
Equity |
||
|
Called-up ordinary share capital |
100 |
100 |
|
Retained earnings |
56 |
57 |
|
156 |
157 |
|
|
Non-current liabilities |
||
|
Borrowings – loan notes (10%) |
40 |
40 |
|
Current liabilities |
||
|
Borrowings (all bank overdraft) |
– |
2 |
|
Trade payables |
37 |
34 |
|
Taxation |
8 |
3 |
|
45 |
39 |
|
|
Total equity and liabilities |
241 |
236 |
Included in ‘cost of sales”, ‘distribution expenses” and ‘administrative expenses”, depreciation was as follows:
|
2009 |
2010 |
|
|
£m |
£m |
|
|
Land and buildings |
6 |
10 |
|
Plant and machinery |
10 |
12 |
There were no non-current asset disposals in either year. The amount of cash paid for interest equaled the expense in both years. Dividends were paid totaling £18 million in each year.
Required :
Prepare a statement of cash flows for the business for 2010.