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

Prepare a statement of cash flows for Pennylane Ltd for the year ending 31 December 2003 as required under IAS 7 using the indirect method.

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 non-current assets.

(c) The proceeds of the sale of non-current 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 Non-current assets Tangible assets Intangible assets Investments Current assets Inventory Accounts receivable 90-day deposit Cash in hand 400 325 230 180 25 630 530 120 104 400 295 50 10 4 580 403 Total assets 1,210 933 Current liabilities Trade accounts payable 122 108 Bank overdraft 188 185 Taxation 120 110 430 403 Non-current liabilities Long-term loan Deferred tax Total liabilities Net assets 100 80 60 180 60 610 463 600. 470 Equity Share capital (1 ordinary shares) 200 150 160 150 Share premium 100 90 Revaluation reserve 140 Retained profits 80 600 470