Chen plc’s income statements for the years ended 31 December 2017 and 2018 and the statements of financial position as at 31 December 2017 and 2018 are as follows:

Included in ‘cost of sales’, ‘distribution expenses’ and ‘administrative expenses’, depreciation was as follows:

There were no non-current asset disposals in either year. The amount of cash paid for interest equalled the expense in each year. Dividends were paid totalling £18 million in each year.

Required:

Prepare a statement of cash flows for the business for 2018.

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Income statements for the years ended 31 December 2017 and 2018 2017 2018 £m £m 207 (101) 106 Revenue Cost of sales Gross profit Distribution expenses Administrative expenses Operating profit Interest payable Profit before taxation Taxation Profit for the year (22) (20) 64 (4) 60 (16) 44 153 (76) 77 (20) (28) 29 (4) 25 (6) 19