Chen plc€™s income statements for the years ended 31 December 2009 and 2010 and the statements of financial position as at 31 December 2009 and 2010 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 both years. Dividends were paid totalling £18 million in each year.

Required: Prepare a statement of cash flows for the business for 2010.

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Income statements for the years ended 31 December 2009 and 2010 2009 2010 £m £m Revenue 153 207 (76) Cost of sales (101) 106 Gross profit Distribution expenses Administrative expenses 77 (22) (20) (20) (28) Operating profit Interest payable 64 29 (4) 60 (4) Profit before taxation 25 (16) (6) 19 Тахation Profit for the year 44 Statements of financial position as at 31 December 2009 and 2010 2009 2010 £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 50 236 Total assets 241 EQUITY AND LIABILITIES Equity Called-up ordinary share capital Retained earnings 100 100 56 57 156 157 Non-current liabilities Borrowings – loan notes (10%) Current liabilities 40 40 Borrowings (all bank overdraft) Trade payables 37 34 Taxation 3 45 39 Total equity and liabilities 241 236 2009 2010 £m £m 10 12 Land and buildings Plant and machinery 10