Simplified financial statements for York plc are:

Income statement for the year ended 30 September 2011

£m Revenue 290.0 Cost of sales (215.0)

Gross profit 75.0 Operating expenses (Note 1) (62.0)

Operating profit 13.0 Interest payable (Note 2) (3.0)

Profit before taxation 10.0 Taxation (2.6)

Profit for the year 7.4 Exerci ses 239 Statement of financial position as at 30 September 2010 2011

£m £m ASSETS Non-current assets (Note 4) 80.0 85.0 Current assets Inventories and trade receivables 119.8 122.1 Cash at bank 9.2 16.6 129.0 138.7 Total assets 209.0 223.7 EQUITY AND LIABILITIES Equity Share capital 35.0 40.0 Share premium account 30.0 30.0 Reserves 31.0 34.9 96.0 104.9 Non-current liabilities Borrowings 32.0 35.0 Current liabilities Trade payables 80.0 82.5 Taxation 1.0 1.3 81.0 83.8 Total equity and liabilities 209.0 223.7 Notes:

1 O perating expenses include depreciation of £13 million and a surplus of £3.2 million on the sale of non-current assets.

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

3 A dividend of £3.5 million was paid during 2011.

4 N on-current asset costs and depreciation:

Cost Accumulated depreciation Carrying amount

£m £m £m At 1 October 2010 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 2011 130.0 45.0 85.0 Required:

Prepare a statement of cash flows for York plc for the year ended 30 September 2011.

AppendixLO1