The summarized statements of financial position as at 31 March 20X1 and 31 March 20X2 of Higher Ltd are as follows:

Additional information
1. Non-current assets

Non-current assets disposed of during the year were sold for £22,000.
2. Current assets at 31 March for each of the two years comprise the following:

3. The preference shares were redeemed during the year ended 31 March 20X2. This redemption was funded by a new issue of equity shares at a premium.
4. During the year the company made a transfer of £15,000 from retained earnings to the capital redemption reserve.
Required
Prepare a statement of cash flows for Higher Ltd for the year ended 31 March 20X2, in accordance with IAS 7. Assume that there was no investment income, interest paid or dividends paid during the year ended 31 March 20X2.

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20X2 Additional £'000 175 £'000 150 ASSETS Non-current assets Current assets Total assets 230 EQUITY AND LIABILITIES Equity Equity shares of £1 eoch Share premium occount Copital redemption reserve Retained eornings Total equit)y Non-current liabilities 3 25 15 120 8% redeemable preference shares of 50p each Total non-current liabilities Current liabilitics Total liobilities Total equity and liabilities 3 100 265 Balance ot 31 March 20X Additions Disposals Depreciation for the year to Cost E000 200 60 (40) Depn £ 000 50 Net book value C 000 150 60 (15) (25) (20) 175 31 March 20x2 20 220 45 20X2 £'000 35 20X1 £000 27 28 Inventories Trade receivables Bank Cash 24 90 80