The financial statements of Saturn plc have been prepared as follows:

Further information:
(a) Extract from statement of income
€000
Operating profit.........................1,008
Dividend received..........................36
Premium on debentures................(120)
Interest paid..............................(144)
Profit before taxation.....................780
Income tax................................(258)
Profit after tax.............................522
(b) Operating expenses written off in the year include the following:
€000
Amortisation of development costs...............................102
Depreciation of property, plant and equipment..................318
(c) Equipment which had cost €240,000 was sold in the year, incurring a loss of €156,000.
(d) The debentures were redeemed at a premium of 10%.
Required:
(a) Prepare a statement of cash flows for the year ended 30 June 20X2.
(b) Briefly explain ways in which statements of cash flows may be more useful than statements of income.

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Statements of financial position as at 30 June 20X2 20XI €000 €000 €000 €000 Non-current assets: Property, plant and equipment at cost Accumulated depreciation Development costs Investments 6,600 5,880 (1,680) (1,380) 4,920 4,500 540 480 420 300 Current assets: Inventory 1,665 1,872 Trade receivables 1,446 1,188 Cash 3,120 42 3,102 8,382 9,000 Equity and reserves Ordinary shares of €l each Share premium account Retained earnings Non-current liability: 2,700 3,000 600 270 6,684 2,622 5,592 3,084 7% debentures 1,200 Current liabilities: Trade payables 1,632 1,104 Taxation 507 396 Dividend declared 60 90 Bank overdraft 117 2,316 1,590 9,000 8,382