The following are the statements of financial positions of Waterloo plc for the last two financial years ended on 30 September.

Explanatory notes to the statement of financial positions are as follows:
1. The movement during the year to 30 September 20X1 in property, plant and equipment was as follows:

* The plant and machinery disposed of during the year was sold for £5,000.
2. Goodwill arising from the purchase of a business on 1 November 20W8 was valued at £200,000. Goodwill has not diminished in value over the year.
3. Dividend details for the company are as follows:

4. There was a bonus issue during the year to 30 September 20X1 of one new equity share for every two held.

Required
Prepare a statement of cash flows for the year ended 30 September 20X1, in accordance with IAS 7. There was no investment income for the year ended 30 September 20X1 but there was debenture interest paid of £35,000 during the year.

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ASSETS Non-current assets Property, plant and equipment Goodwill Current assets Inventories Trade receivables Balance at bank Total assets EQUITY AND LIABILITIES Equity Equity shares, of 50p each, fully paid Share premium account Revaluation reserve Retained earnings Total equity Non-current liabilities 9% debentures Total non-current liabilities Current liabilities Bank overdraft Trade payables Total current liabilities Total liabilities Total equity and liabilities 20X1 £'000 1,320 200 1,520 420 220 640 2,160 750 100 300 340 1,490 360 360 120 190 310 670 2,160 20X0 £'000 1,090 200 1,290 300 120 20 440 1,730 500 350 280 1,130 400 400 200 200 600 1,730 Notes 1 2