(a) Land and buildings were revalued on 1 July 2011 and £26,000 of the revaluation gain was treated as realised in the year. No new land and buildings were acquired in the year.

(b) Equipment acquired for £70,000 was sold in the year for £12,000.

(c) Extracts from the Statement of income for the year are shown.

(d) Included within cost of sales in the year were the following:

£40,000 depreciation of equipment £32,000 amortisation of brand names and depreciation of buildings.

(e) On 1 July 2010 a bonus issue of one for five was made. The cost of the bonus issue, together with £2,000 expenses of a cash issue which took place in April 2011, has been offset from the balance in the Share premium.

Required: Prepare the Statement of cash flows for the year ended 30 June 2012.

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Statements of financial position as at 30 June 2012 2011 Land and buildings Accumulated depreciation £'000 £'000 Brand names Current assets: Inventory Trade receivables Cash and bank 2,250 (50) 2,200 Equipment at cost 960 Accumulated depreciation (290) 492 374 36 670 (260) 288 £'000 £'000 1,800 (480) 1,320 902 4,060 378 312 4 540 320 694 2,874