16.5 The statements of financial position of Lochnagar Ltd for the past two years and the company's most recent income statement are set out below. Income statement for the year to 31 October 2016 000 Revenue 22,400 Cost of sales (12,320) Gross profit 10,080 Gain on disposal of property, plant and equipment 224 Distribution costs (4,704) Administrative expenses (2,240) Finance costs interest on loans (91) Profit before tax 3,269 Tax expense (1,344) 1,925 Profit for the year Statements of financial position at 31 October Assets Non-current assets 2016 2015 000 000 000 000 Property, plant and equipment 25,171 24,100 Current assets Inventories 3,696 2,464 Trade and other receivables 3,360 2,464 Cash and cash equivalents 7,056 129 5,057 Total assets 32,227 29,157 Equity Share capital 2,200 2,000 Share premium account 800 500 Retained earnings 24,990 23,065 27,990 25,565 Liabilities Non-current liabilities Bank loans 1,300 800 Current liabilities Trade and other payahles 1,232 1,848 Current tax liability 1,344 944 Bank overdraft 361 2,937 2,792 Total equity and liabilities 32,227 29,157 The following information is also available in relation to the year to 31 October 2016: (a) The total depreciation charge for the year was 3,545,000. (b) Property, plant and equipment costing 976,000 with accumulated depreciation of 355,000 was sold during the year at a profit of 224,000. (c) All sales and purchases were on credit. Other expenses were paid for in cash. (d) No dividends were paid during the year. Required: Prepare a statement of cash flows for Lochnagar Ltd for the year to 31 October 2016, in accordance with the requirements of accounting standard IAS7 and using the indirect method