Chen plc’s income statements for the years ended 31 December 2016 and 2017 and the statements of financial position as at 31 December 2016 and 2017 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 2017.

Transcribed Image Text:

Income statements for the years ended 31 December 2016 and 2017 Revenue Cost of sales Gross profit Distribution expenses Administrative expenses Operating profit Interest payable Profit before taxation Taxation Profit for the year 2016 2017 m m 207 153 (101) (76) 106 77 (22) (20) 64 (4) 60 (16) 44 * (20) (4) Statements of financial position as at 31 December 2016 and 2017 2016 2017 m m ASSETS Non-current assets Property, plant and equipment Land and buildings 110 130 Plant and machinery 62 56 172 186