From the income statement for the year ended 31 December 2010 and balance sheets as at 31 December 2009 and 31 December 2010, and the additional information shown below, prepare a statement of cash fl ows for Medco Ltd for the year to 31 December 2010 .

During the year 2010 the company:

(a) acquired new non-current assets that cost £12,500

(b) issued new share capital for £5,000

(c) sold non-current assets for £2,000 that had originally cost £3,000 and had a net book value of £2,500

(d) depreciated its non-current assets by £2,000

(e) paid an interim dividend of £300,000 during the year and proposed a fi nal dividend of £600,000.

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Income statement Operating profit Interest paid Profit before tax Income tax paid Profit for the year Balance sheet as at 31 December 2010 2,500 (100) 2,400 (500) 1,900 2010 2009