A 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 19X3 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.)

(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 the Inland Revenue during \(19 \times 3\) amounted to \(£ 110,000\).

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Pennylane Ltd Balance Sheets as at 31 December 19X3 19X2 .000 000 Fixed assets Tangible assets 400 325 Intangible assets 230 180 Investments 25 630 530 Current assets Stocks 120 104 Debtors 400 295 Short-term investments 50 Cash in hand 10 4 580 403 Creditors: amounts falling due within one year Trade creditors 122 108 Bank overdraft 88 105 Taxation 120 110 Dividends proposed 100 80 430 403 Net current assets 150