Torrent plc’s income statement for the year ended 31 December 2007 and the balance sheets as at 31 December 2006 and 2007 are as follows:

Income statement

£m Revenue 623 Cost of sales (353)

Gross profit 270 Distribution expenses (71)

Administrative expenses (30)

169 Rental income 27 Operating profit 196 Interest payable (26)

Profit before taxation 170 Taxation (36)

Profit for the year 134 Balance sheets as at 31 December 2006 and 2007 2006 2007

£m £m Non-current assets Property, plant and equipment Land and buildings 310 310 Plant and machinery 325 314 635 624 Current assets Inventories 41 35 Trade receivables 139 145 180 180 Total assets 815 804 Equity Called-up ordinary share capital 200 300 Share premium account 40 –

Revaluation reserve 69 9 Retained earnings 123 197 432 506 Non-current liabilities Borrowings – Loan notes 250 150 Current liabilities Borrowings (all bank overdraft) 56 89 Trade payables 54 41 Taxation 23 18 133 148 Total equity and liabilities 815 804 During 2007, the business spent £67m on additional plant and machinery. There were no other non-current asset acquisitions or disposals.

There was no share issue for cash during the year. The interest payable expense was equal in amount to the cash outflow. A dividend of £60m was paid.

Required:

Prepare the cash flow statement for Torrent plc for the year ended 31 December 2007.