The balance sheets and additional information relating to Pennylane Ltd are given below.

Prepare a cash flow statement for Pennylane Ltd for the year ended 31 December 2003 as required under FRS 1 using the indirect method, together with Note 1 to the statement. (Do not attempt to provide the reconciliation of net cash flow to net debt.)

Additional information:

(a) During the year interest of £75,000 was paid, and interest of £25,000 was received.

(b) The following information relates to tangible fixed assets.

(c). The proceeds of the sale of fixed asset investments were £30,000.

(d) Plant, with an original cost of £90,000 and a net book value of £50,000, was sold for £37,000.

(e) Tax paid to Revenue and Customs during 2003 amounted to £110,000.

(f) Dividends of £80,000 were paid during 2003.

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Pennylane Ltd Balance Sheets as at 31 December 2003 2002 000 000 Fixed assets Tangible assets Intangible assets Investments Current assets Stocks Debtors 400 325 230 180 25 630 530 120 104 400 295 90-day deposit 50 I Cash in hand 10 4 580 403 Creditors: amounts falling due within one year Trade creditors 122 108 Bank overdraft 188 185 Taxation Net current assets 120 110 430 403 150 780 530 Total assets less current liabilities Creditors: amounts falling due after one year Long-term loan (100) Provisions for liabilities and charges: deferred taxation (80) (60) 600 470