1 Operating expenses include depreciation of £13m and a surplus of £3.2m on the sale of noncurrent assets.

2 The expense and the cash outflow for interest payable are equal.

3 A dividend of £3.5m was paid during 2007.

4 Non-current asset costs and depreciation:

Cost Accumulated Carrying depreciation amount

£m £m £m At 1 October 2006 120.0 40.0 80.0 Disposals (10.0) (8.0) (2.0)

Additions 20.0 20.0 Depreciation 13.0 (13.0)

At 30 September 2007 130.0 45.0 85.0 Required:

Prepare a cash flow statement for York plc for the year ended 30 September 2007.