Question 1

The statements of financial position for Jay Limited at 31 December 2022 and 31 December

2021 together with extracts from the statement of profit or loss for the year ended 31

December 2022 and relevant notes are presented below.

Assets

Non-current assets

Property, plant and equipment

Investments

Current assets

Inventory

Trade and other receivables

Cash and cash equivalents

Total assets

Current liabilities

Trade and other payables

Current taxation

Non-current liabilities

Borrowings

Total liabilities

Net assets

Equity

Share capital

Share premium

Retained earnings

Total equity

2022

£000

12,349

2,570

14,919

2,451

1,466

5,014

8,931

23,850

5,420

992

6,412

2,500

8,912

14,938

3,000

4,000

7,938

14,938

2021

£000

9,564

2,550

12,114

2,274

1,750

1,503

5,527

17,641

4,230

890

5,120

2,200

7,320

10,321

2,500

3,250

4,571

10,321/nJay Limited: statement of profit or loss (extract) for the year ended 31 December 2022

£000

4,980

129

150

Operating profit

Finance income

Finance expense

Profit before tax

Tax

Profit for the year

4,959

992

3,967/n[SEE NEXT PAGE]

During the year the following transactions took place:

Property, plant and equipment with a net book value of £95,000 was sold for £120,000

cash.

New property, plant and equipment was bought during the year for £4,500,000 in cash.

Depreciation charged on property, plant and equipment during the year amounted to

£1,620,000.

■

During the year to 31 December 2022, Jay Limited issued shares for cash and paid a cash

dividend of £600,000.

The company sold an investment that had cost £60,000 for £130,000 cash. New

investments were bought during the year for £80,000 in cash.

■ Tax of £890,000 was paid in cash during the year.

Cash from new long-term borrowing was received in 2022.

Required:

Prepare the statement of cash flows for Jay Limited for the year ended 31 December 2022

using the indirect method.