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The following information is provided for Ship Limited in respect of the year ended 31 December 2020.

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2020

	2020	2019
	000	000
Sales	713	642
Cost of sales	(406)	(421)
Gross profit	307	221
Distribution and administrative expenses	(25)	(21)
Depreciation and amortisation	(115)	(85)
Interest receivable	24	20
Interest payable	(10)	(40)
Profit before taxation	181	95
Taxation	(52)	(42)
Profit after taxation	129	53
Dividends paid and payable	120	50

Statement of Financial Position as at 31 December 2020

	2020	2019
	000	000
Non-current Assets
Intangible assets	256	312
Property, plant and equipment	673	433
Investments	240	200
	1,169	945
Current Assets
Inventory	326	310
Trade receivables	156	143
Bank	45	-
	1,696	1,398
Equity and Liabilities
1 ordinary shares	620	420
Share premium	340	100
Retained profits	308	299
	1,268	819
Non-current Liabilities
Debentures	150	400
Current Liabilities
Trade payables	135	85
Taxation	43	42
Dividends	100	40
Bank overdraft	-	12
	1,696	1,398

Additional Information

1. No intangible non-current assets were bought or sold during the year ended 31 December 2020.

2. A profit of 8,000 arising from the sale of property, plant and equipment during the year ended 31 December 2020 is recorded in sales. The original cost of the assets sold was 52,000 and the sale proceeds were 25,000.

3. All interest receivable and payable was received and paid during the year ended 31 December 2020.

Requirement

(a) Using both the direct and indirect methods, prepare a statement of cash flows for Ship Limited for the year ended 31 December 2020 in accordance with IAS 7 Statement of Cash Flows.

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