3 (32 marks) The following information has been extracted from the draft financial statements of Hue, a limited liability company. Statement of financial position as at 31 December Non current assets Current assets Inventory Trade receivable Bank 20x9 20x8 $'000 $'000 4,600 2,700 580 500 360 330 70 940 900 5.540 3.600 Total assets Equity and liabilities Equity Ordinary share capital 3,500 2,370 Share premium 300 150 Retained earnings 1,052 470 4,852 2,990 Current liabilities Trade payable 508 465 Taxation 180 145 688 610 Total equity and liabilities 5.540 3.600 Additional information a. The statement of profit or loss for the year ended 31 December 20x9 shows the following: Operating profit Interest expense Profit before tax Taxation Profit for financial year b. During the year, dividends paid were $270,000. $'000 1,052 20 1,032 180 852 c. Depreciation expense on non-current assets were $700,000. d. During the year, non-current assets with net book value of $200,000 were sold for $180,000 Required: a) Prepare a statement of cash flows for Hue for the year ended 31 December 20x9, using the indirect method. (23.0 marks) b) What are advantages of statement of cash flows? (9.0 marks)