Chen plc€™s income statements for the years ended 31 December 2014 and 2015 and the statements of financial position as at 31 December 2014 and 2015 are as follows: Income statements for the years ended 31 December 2014 and 2015

Statements of financial position as at 31 December 2014 and 2015

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 2015.

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2014 2015 £m £m Revenue 207 153 (101) Cost of sales (76) Gross profit Distribution expenses Administrative expenses 77 106 (22) (20) (20) (28) Operating profit Interest payable Profit before taxation 64 29 (4) (4) 60 25 Taxation (16) 44 (6) Profit for the year 19 2014 2015 £m £m ASSETS Non-current assets Property, plant and equipment Land and buildings Plant and machinery 110 130 62 56 172 186 Current assets Inventories 24 25 Trade receivables 26 25 Cash at bank and in hand 19 69 50 Total assets 241 236 EQUITY AND LIABILITIES Equity Called-up ordinary share capital Retained earnings 100 100 56 57 156 157 Non-current liabilities Borrowings – loan notes (10%) 40 40 Current liabilities Borrowings (all bank overdraft) Trade payables 2 37 34 Taxation 3 45 39 Total equity and liabilities 241 236