The statements of financial position, cash flows, income and movements of non-current assets of Dragon plc for the year ended 30 September 20X6 are set out below:(i) Statement of financial position(ii) Statement of income (extract) for the years ended 30 September 20X6(iii) Statement of cash flows(iv) Tangible non-current assets (or PPE) the movements in the year were as follows:You are also provided with the following information:(i) There was a debenture issue on 1 October 20X5 with interest payable on 30 September each year.(ii) An interim dividend of £70,000 was paid on 1 July 20X6.(iii) The short-term investment was sold for £59,000 on 1 October 20X5.(iv) Business activity increased significantly to meet increased consumer demand.Required:(a) Prepare a Reconciliation of operating profit to net cash inflow from operating activities.(b) Discuss the financial developments at Dragon plc during the financial year ended 30 September 20X6 with particular regard to its financial position at the year end and prospects for the following financial year – supported by appropriate financialratios.
The statements of financial position cash flows income and mov