Neco 2023 Financial Accounting Question 5

The following information relates to Company Y for the year ended 31 Dec 2023 (all amounts in \u20a6):\n\nProfit before tax: 250,000\nTax expense paid: 45,000\nDepreciation expense: 40,000\nGain on sale of equipment: 15,000 (included in profit)\nIncrease in inventories: 30,000\nDecrease in trade receivables: 20,000\nIncrease in trade payables: 25,000\nPurchase of new equipment (cash): 120,000\nProceeds from sale of old equipment (cash): 80,000\nIssue of share capital (cash received): 100,000\nPayment of dividends (cash): 40,000\nRepayment of long‑term loan (cash): 60,000\nInterest paid (cash): 20,000\n\nPrepare a statement of cash flows for the year using the indirect method, showing cash flows from operating, investing and financing activities, and compute the net increase (or decrease) in cash and cash equivalents for the year.