The statements of financial position of Ampersand plc as at 31 May 2012 and 31 May 2013 are as follows:

2013 2012

£000 £000 £000 £000 £000 £000 Non- current assets

(depreciated value)

54,000 47,000 Current assets:

Inventory 14,000 11,000 Trade receivables 19,100 17,400 33,100 28,400 Less Current liabilities Trade payables 14,200 15,500 Taxation 14,000 13,000 Bank overdraft 19,600 10,900

(47,800) (39,400)

Net current liabilities (14,700) (11,000)

Total net assets 39,300 36,000 Equity Share capital 21,000 10,000 Share premium account 7,500 17,500 Retained earnings 10,800 8,500 Total equity 39,300 36,000 The summarised income statements for the two years ended 31 May 2013 are as follows:

2013 2012

£000 £000 Gross profit 153,340 132,200 Less Expenses (including depreciation £3.2m) (105,640) (94,900)

47,700 37,300 Profit/(Loss) on sale of non-current assets (1,400) 2,800 Operating profit 46,300 40,100 Less Interest paid (10,000) (10,000)

Profit for the year 36,300 30,100 Less Taxation (14,000) (13,000)

Profit after tax 22,300 17,100 2013 2012 £000 £000 Less Dividends paid (20,000) (11,500)
Retained earnings for the year 2,300 5,600 Retained earnings brought forward 8,500 2,900 Retained earnings carried forward 10,800 8,500 Notes:
1 A bonus issue was made during the year to 31 May 2013 by transferring £10m from the share premium account.
2 A summary of the company’s non-current assets (at cost price) for the year ended 31 May 2013 is shown below (£000s):
£
1 June 2012 Opening balance 87,000 31 May 2013 Additions 14,000 101,000 31 May 2013 Sales* (12,000)
31 May 2013 Closing balance 89,000 * The assets which were sold realised £2.4m, which represented a loss on disposal of £1.4m when compared with their depreciated value at the date of sale.
Produce a cash flow statement for the year ended 31 May 2013.