Boris Limited’s statement of cash flows for the year ended 31st December 2021

The following Balance Sheets of financial positions for the year ended 31st December 2020 and 2021 have been prepared for Boris Limited. Statement of financial positions at: 31.12.21 31.12.20 £ £ £ £ Fixed Assets Plant and machinery at cost 53,000 53,000 Less: Depreciation (11,000) (9,000) 42,000 44,000 Investments at cost - 18,000 Current assets Inventory 33,000 24,000 Trade receivables 27,000 18,000 Cash - 8,000 60,000 50,000 102,000 112,000 Capital and reserves Ordinary share capital 50,000 50,000 Share premium account 9,000 9,000 Retained earnings 12,000 8,000 Shareholders' funds 71,000 67,000 Long-term liabilities Loans - 27,000 Current liabilities Trade payables 22,000 18,000 Bank overdraft 9,000 31,000 102,000 112,000 Additional information: There were no purchases or sales of plant and machinery during the year. Required 1. Mr Boris has asked you to prepare Boris Limited’s statement of cash flows for the year ended 31st December 2021. (18 Marks) 2. Write a short memo to Mr Boris explaining the findings of your statement of cash flow. (7 Marks)