Cash Flow Statement
Question 2a
Using the following information from Elena Ltd, you are required to prepare a statement of cash flow for the year ended 3th December 2018.
While the company spends a total of £125,000 on non- current assets, cash from operating activities stood at £11,000. £18,000 was paid out as dividends. Cash as at January 1st 2018 was £15,000 and a total of £90,000 came from borrowing. [10marks]

Question 2b
Briefly explain to Elena Ltd why the following will be added back or deducted from the cash flow statement using the indirect method:
⦁ Depreciation
⦁ Disposal of non-current asset
⦁ An increase in inventories

Professional presentation of work. [4marks]