(a) Below are the statement of financial position for Telaga Biru Bhd at 31 December 2019 and 31 December 2020 and the statement of comprehensive income for the year ended 31 December 2020 2020 2019 RM000 RM000 ASSETS Non-current assets Property, plant and equipment 528 447 Development costs 110 93 638 540 Cuurent assets Inventories 413 380 Trade receivables 238 215 Investments 28 0 Cash 111 4 790 599 TOTAL ASSETS 1428 1139 EQUITY AND LIABILITIES Equity RM1 ordinary shares 240 200 Share premium 140 120 Revaluation surplus 100 0 Retained eamings 538 530 1018 850 Non-current liabilities Provision for warranties 30 25 6% Debentures 150 0 180 25 Current liabilities Income tax payable 37 32 Trade payables 193 232 230 264 TOTAL EQUITY AND 1428 1139 LIABILITIES Statement of Comprehensive Income for the year ended 31 December 2020 RM000 Revenue 900 Cost of sales (550) Gross profit 350 Expenses (245) Finance costs (9) Profit on sale of equipment 7 Profit before tax 103 Income tax expense (30) Profit for the period 73 Bares de la Notes: 1. Deferred development expenditure amortized during 2020 was RM25,000 2. Additions to property, plant and equipment totaling RM167,000 were made. Proceeds from the sale of equipment were RM58,000 giving rise to a profit of RM7,000. No other items of property, plant and equipment were disposed of during the year 3. Finance costs represent interest paid on the new 6% debentures issued on 1 January 2020. 4. Current asset investments represent treasury bills acquired. The company deems these to represent cash equivalents, 5. Dividends paid during the year amounted to RM65,000 6. Expenses include wages paid of RM44,000 and bad debts of RM12,000 Required: Prepare a statement of cash flow for Telaga Biru Bhd for the year ended 31 December 2020. using indirect method in accordance with IAS 7 Statement of cash flow. (23 marks) (b) Explain the meaning of each of the following in the context of statement of cash flows: i Cash ii Cash equivalents (2 marks) [Total: 25 Marks]