Prepare a cash flow statement for the year to 30th June Year 2 from the following information relative to Strong Ltd. (Please see attached file for information).

Prepare a cash flow statement for the year to 30th June Year 2 from the following information relative to Strong Ltd.

(Please see attached file for information).

ATTACHMENT PREVIEW

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30-Jun
30-Jun
30-Jun
30-Jun
Balance Sheets:
Year 1
Year 2
Year 1
Year 2
£
£
£
£
Fixed Assets
40000
44000
Issued Share
Stock
9000
10000
Capital
50000
50000
Debtors
41000
36000
General Reserve
10000
12000
Bank
30000
16000
Profit & Loss Account
20000
26000
Debentures
10000
10000
Corporation Tax
due 1/1/2
6000
due 1/1/3
4000
Current Liabilities
24000
4000
£120,000
£106,000
£120,000
£106,000
Profit & Loss Account for year ended 30 June Year 2
£
£
Trading Profit
20000
Depreclation
4000
16000
Corporation Tax
4000
12000
Profit Brought Foward
20000
32000
Dividend Paid
4000
Transfer to General Reserve
2000
£26,000
NOTES:
1) The dividend paid relates to Year 2
2)
Movement in fixed assets:
Cost
Depreciation
Net Book Value
£
£
£
Balance at
1 July Year 1
50000
10000
40000
Acquisition
8000
8000
58000
10000
48000
Depreciation for Year
4000
4000
£58,000
£14,000
£44,000

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