The following are the financial statements for Nailsea plc for the years ended 30 June 2009 and 2010:

There were no disposals of non-current assets in either year. Dividends were paid in 2009 and 2010 of £40 million and £45 million, respectively.

Required: Prepare a statement of cash flows for Nailsea plc for the year ended 30 June 2010.

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Income statement for years ended 30 June 2009 2010 £m £m Revenue 1,230 (722) (270) 2,280 (1,618) (320) Operating expenses Depreciation Operating profit Interest payable 238 342 (27) 315 Profit before taxation 238 Taxation (110) 128 (140) 175 Profit for the year Statements of financial position as at 30 June 2009 2010 £m £m ASSETS Non-current assets Property, plant and equipment (at carrying amount) Land and buildings Plant and machinery 1,500 810 1,900 740 2,640 2,310 Current assets Inventories 275 450 Trade receivables 100 250 Bank 118 375 818 Total assets 2,685 3,458 EQUITY AND LIABILITIES Equity Share capital (fully paid £1 shares) Share premium account Retained profits 1,400 1,600 200 300 828 958 2,428 2,858 Non-current liabilities Borrowings – 9% loan notes (repayable 2011) Current liabilities 300 Borrowings (all bank overdraft) Trade payables 32 170 230 Taxation 55 70 257 300 Total equity and liabilities 2,685 3,458