The financial statements of AG are given below:

Income statement for the year ended 31 Match 2005
$000
Revenue........................................................................7 500
Cost of sales....................................................................4 000
Gross profit.....................................................................3 500
Distribution costs.................................................................900
Administrative expenses...........................2 300.....................3 200
Profit from operations............................................................300
Finance costs........................................................................45
Profit before tax...................................................................255
Income tax expense...............................................................140
Profit for the period...............................................................115
Additional information:
(i) On 1 April 2004, AG issued 1 400 000 $0.50 ordinary shares at a premium of 50%.
(ii) On 1 May 2004, AG purchased and cancelled all its 10% loan notes at par.
(iii) Non-current tangible assets include properties which were revalued upwards by $125 000 during year.
(iv) Non-current tangible assets disposed of in the year had a net book value of $75 000; cash received on disposal was $98 000. Any gain or loss on disposal has been included under cost of sales.
(v) Cost of sales includes $80 000 for development expenditure amortized during the year.
(vi) Depreciation charged for the year was $720 000.
(vii) The accrued expenses balance includes interest payable of $87 000 at 31 March 2004 and $12 at 31 March 2005.
(viii) The income tax expenses for the year to 31 March 2005 is made up as follows:
Corporate income tax ..........................................$000
Deferred tax ....................................................... 90
........................................................................50
....................................................................... 140
(ix) Dividend paid during the year $100.000.
Required:
Prepare a statement of cash flows, using the indirect method, for AG for the year ended 31 March 2005, in accordance with IAS 7, Statements of Cash Flows (CIMA paper, Financial Accounting and Tax Principles - May 2005)

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Balance sheets as at 31 March 2005 31 March 2004 Non-current assets: Plant, property and equipment Development expenditure Current assets: Inventories Trade receivables Cash and cash equivalents Total assets Equity and liabilities Equity: Share capital Share premium account Revaluation reserve Retained earning Total equity Non-current liabilities 10% loan notes 5% loan notes Deferred tax Total non-current liabilities Current liabilities: Trade payables Income tax Accrued expenses Total current liabilities Total equity and liabilities 4 800 4500 370 5 200 400 575 232 4 870 515 552 1 752 6 622 1 227 6 427 2 600 1 900 1 430 1 415 5 205 4 015 1 000 750 1 700 190 172 107 667 6 622 712 6 427 1