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The statements of financial position of Hampstead Limited as at 31 March 2018 and 2017 and a summary of the income statement for the year ended 31 March 2018 appear below Statements of financial position at 31 March 2017 Land and buildings Plant and machinery 277 140 Current Assets Trade receivables Cash at bank Total assets Equity & liabilities Ordinary share capital Share premium Revaluation reserve Retained earnings Total equity 90 15 126 26 10 110 Long-term loans Current liabilities Trade payables Interest accrued Tax Bank overdraft 16 47 Total equity and liabilities 479 You are given the following information During the year items of machinery were sold. These machines had originally oost $27,000 and had a net book value at the disposal date of 11,000. The disposal proceeds were 15,000 2. A dividend of 155,000 was paid during the year OUniversty of London 2018 UL18/0146 Page 12 of 18 3. In the income statement for the year ended 31.3.18, the following figures Depreciation on plant and machinery Interest expense $25,000 12,000 (a) Prepare a cash flow statement, together with the reconciliation statements of operating proft and cash balance, for Hampstead Limited for the year ended 31.3.18 [15 marks] (b) Criticaly evaluate this company's cash flow statement [5 marks]

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