shown below are the summarised final accounts of martel plc for the last two financi 1572284

Shown below are the summarised final accounts of Martel plc for the last two financial years:

1 The movement in non-current assets during the year ended 31 December 20X1 was as follows:

The plant and machinery disposed of during the year was sold for £20,000.

2 During 20X1, a rights issue was made of one new ordinary share for every eight held at a price of £1.50.

3 A dividend of £36,000 (20X0 £30,000) was paid in 20X1. A dividend of £72,000 (20X0 £40,000) was proposed for 20X1. A transfer of £50,000 was made to the general reserve.

Required:

(a) Prepare a statement of cash flows for the year ended 31 December 20X1, in accordance with IAS 7. (b) Prepare a report on the liquidity position of Martel plc for a shareholder who is concerned about the lack of liquid resources in the company.