The balance sheets and additional information relating to Pennylane Ltd are given below. Prepare a cash flow statement for Pennylane Ltd for the year ended 31 December 19X3 as required under FRS 1 using the indirect method, together with note 1 to the statement.

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Pennylane Ltd Balance Sheets as at 31 December 19X3 19X2 000 000 Fixed assets Tangible assets 400 325 Intangible assets Investments 230 180 25 630 530 Current assets Stocks 120 104 Debtors 400 295 Short-term investments 50 - Cash in hand 10 580 403 Creditors: amounts falling due within one year Trade creditors 122 108 Bank overdraft 88 105 Taxation 120 110 Dividends proposed 100 80 430 403 Net current assets 150 Total assets less current liabilities 780 530 Creditors: amounts falling due after one year Long-term loan (100) Provisions for liabilities and charges: Deferred taxation (80) (60) 600 470