The Financial Statements and extracts from the notes thereto for Martel Plc as at 31st December

2021 are shown below.

Martel Plc
Statements of Financial Position
As at 31st December 2021 2020
£m £m
Net Assets
Non-current assets:
Property, plant & equipment: 2,124 1,354

Current assets:
Inventory 504 330
Receivables 264 132
Government securities 40 0
Bank 0 22
808 484
Current liabilities:
Payables 266 220
Taxation 120 50
Proposed dividend 72 40
Bank overdraft 184 0
642 310
Net current assets 166 174

Non-current liabilities:
9% debentures 432 350

Net Assets 1,858 1,178

Equity
Equity Capital & Reserves:
Ordinary shares of 50p each 900 800
Share premium 120 70
Revaluation reserve 360 0
Retained earnings 478 308
Total Equity 1,858 1,178

1
Martel Plc
Statement of Profit & Loss & Other Comprehensive Income (Extract)
Year ended 31st December 2021 £m

Operating profit 479

Finance costs (52)
Profit before taxation 427
Taxation (149)
Profit after taxation 278
Other comprehensive income:
Gain on property revaluation 360
Total comprehensive income 638

Martel Plc
Statement of Changes in Equity (figures in £m)
Year ended 31st December 2012

Ordinar Share Revaluatio Retaine Total

y premiu n d equit
shares m reserve earning y
s

At 31st December 2020 800 70 308 1,178

Rights issue of shares 100 50 150

Total comprehensive 360 278 638

income

Dividends paid & proposed (108) (108)

At 31st December 2021 900 120 360 478 1,858

Martel Plc
Notes to the financial statements: Property, plant & equipment (figures in £m)
Year ended 31st December 2012

Land & Plant & Motor Total

Buildings machiner vehicles
y

Cost at 31 December 2020 3,309 470 231 4,010

Revaluation 360 0 0 360

Additions 81 470 163 714

Disposal 0 (60) 0 (60)

Cost at 31 December 2021 3,750 880 394 5,024

2
 Depreciation at 31 December 2020 2,211 276 169 2,656

Disposals 0 (48) 0 (48)

Charge for the year 75 132 85 292

Depreciation at 31 December 2021 2,286 360 254 2,900

Book value at 31 December 2020 1,098 194 62 1,354

Book value at 31 December 2021 1,464 520 140 2,124

Note: the machinery disposed of during the year was sold for £20 million.

Required:
Prepare the Statement of Cash Flows for year ended 31st December 2012.

Martel Plc
Statement of Cash Flows
Year ended: 31 December 2021
$m
Cash flows from operating activities
Net profit before tax
Adjustments for
Depreciation
Profit on sale of plant
Interest expense
Operating profit before working capital changes
Increase in trade and other receivables
Increase in inventories
Increase in trade payables
Cash generated from operations
Interest paid
Taxes paid
Net cash from operating activities

Cash flows from investing activities

Purchase of property, plant and equipment
Proceeds from sale of equipment
Net cash used in investing activities

Cash flows from financing activities

3
Proceeds from issuance of share capital
Proceeds from 9% debenture issue
Dividends paid
Net cash from financing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents brought forward
Cash and cash equivalents carried forward