On 1 September 200Y CIP Ltd. issues 21 million £1 ordinary shares at a premium of 100%. The financial statements for the year to 30 September 200Y were as follows:

Additional information:
• The current assets investment is a 30-day government bond.
• Property, plant and equipment include certain properties which were revalued in the year.
• Depreciation charged in the year is £38 million.
• Debentures were redeemed at par on 30 September 200Y.

• Assets with a net book value of £31 million were disposed of during the year for

£35 million.

• Creditors falling due within one year are further analysed as follows:

Prepare a cash flow statement for the year ended 30.9.0Y in accordance with IAS 7 showing clearly the reconciliation of operating profit to net cash flows from operating activities.

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INCOME STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 200Y Turnover Cost of sales m m 587 260 Gross profit Distribution costs Administration costs Operating profit Interest payable Interest receivable Profit before tax Taxation Profit after tax 327 5 8 89 238 7 231 53 178 Dividends 33 Retained profit for the year 145