The following financial statements for Blackstone plc are a slightly simplified set of published accounts. Blackstone plc is an engineering business that developed a new range of products in 2007. These products now account for 60 per cent of its turnover.

Notes:
1 The expense and the cash outflow for interest payable are equal.
2 The movements in property, plant and equipment during the year are set out below.

3 Intangible assets represent the amounts paid for the goodwill of another engineering business acquired during the year.
4 Proceeds from the sale of non-current assets in the year ended 31 March 2010 amounted to £54 million.
5 Dividends were paid on ordinary shares of £300 million in 2009 and £400 million in 2010.
Required: Prepare a statement of cash flows for Blackstone plc for the year ended 31 March 2010. (Hint: A loss (deficit) on disposal of non-current assets is simply an additional amount of depreciation and should be dealt with as such in preparing the statement of cash flows.)

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Income statement for the years ended 31 March 2009 2010 Notes £m £m Revenue 7,003 11,205 Cost of sales (3,748) 3,255 (5,809) 5,396 Gross profit Operating expenses Operating profit Interest payable (2,205) 1,050 (216) (3,087) 2,309 (456) 1,853 Profit before taxation 834 (210) Taxation (390) 1,463 Profit for the year 624 Statements of financial position as at 31 March 2009 2010 Notes £m £m ASSETS Non-current assets Property, plant and equipment Intangible assets 2 4,300 7,535 700 4,300 8,235 Current assets Inventories 1,209 2,410 1,173 Trade receivables 641 Cash at bank 123 1,973 6,273 3,583 11,818 Total assets EQUITY AND LIABILITIES Equity Share capital Share premium Capital reserves 1,800 1,800 600 600 352 685 3,437 352 Retained earnings 1,748 4,500 Non-current liabilities Borrowings - Bank loan (repayable 2013) 1,800 3,800 Current liabilities Trade payables 931 1,507 Taxation 105 195 Borrowings (all bank overdraft) 1,816 3,518 1,036 6,273 Total equity and liabilities 11,818 Land and Plant and Fixtures and buildings machinery £m fittings £m Total £m £m Cost 3,850 2,970 10,470 4,578 (581) At 1 April 2009 4,500 2,120 1,608 Additions Disposals (365) 6,455 (216) 3,512 At 31 March 2010 4,500 14,467 Depreciation At 1 April 2009 Charge for year Disposals 1,275 225 3,080 1,815 281 6,170 1,251 745 (305) 3,520 |(184) 1,912 (489) 6,932 At 31 March 2010 1,500 Carying amount At 31 March 2010 3,000 2,935 1,600 7,535