The income statement for the year ended 30 June Year 3 and the balance sheets as at 30 June Years 2 and 3 for the Z Company are as follows:

The following information also relates to the year ended 30 June Year 3: ◆ The company paid £ 47,000 for new office equipment. ◆ Non-current assets with a net book value of £5,000 were disposed of during the year for £7,000. The profit on the sale is included within administrative expenses in the income statement. ◆ The impairment of the purchased goodwill is included within administrative expenses in the income statement. ◆ No long-term loans were repaid during the period. ◆ The dividend paid during the year to shareholders was £ 21,000. Required Prepare a cash flow statement for the Z Company for the year ended 30 June Year 3.

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The Z Company: Income statement for the year ended 30 June Year 3 Revenue Cost of sales Gross profit '000 '000 675 490 185 52 Distribution costs Administrative expenses Other expenses 22 61 12 Total operating expenses 125 Operating profit 60 Interest payable (6) Interest receivable Profit before tax Taxation Profit for the period 57 12 45