The statements of financial position and additional information relating to Pennylane Ltd are given below. Prepare a statement of cash flows for Pennylane Ltd for the year ending 31 December 2016 as required under IAS 7 using the indirect method.

Additional information:
(a) During the year interest of £75,000 was paid, and interest of £25,000 was received.
(b) The following information relates to tangible non-current assets:

(c) The proceeds of the sale of non-current asset investments were £30,000.
(d) Plant, with an original cost of £90,000 and a net book value of £50,000, was sold for £37,000.
(e) Tax paid to Revenue and Customs during 2016 amounted to £110,000.
(f) Dividends of £80,000 were paid during 2016.

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Non-current assets Tangible assets Intangible assets Investments Current assets Inventory Accounts receivable 90-day deposit Cash in hand Total assets Current liabilities Trade accounts payable Bank overdraft Taxation Non-current liabilities Long-term loan Deferred tax Total liabilities Net assets Pennylane Ltd Statements of Financial Position as at 31 December Equity Share capital (£1 ordinary shares) Share premium Revaluation reserve Retained profits 2016 £000 400 230 630 120 400 50 10 580 1,210 122 188 120 430 100 80 180 610 600 200 160 100 140 600 2015 £000 325 180 25 530 104 295 403 933 108 185 110 403 60 60 463 470 150 150 90 80 470