A partial extract of the consolidated statement of comprehensive income of Emery Pte Ltd and its subsidiaries (Emery Group) for the year ended 31 December 2019 was as follows:

	$.000
Operating profit before tax	47,000
Share of associates’ results	6,000
Profit before tax	53,000
Taxation	13,000
Profit after taxation	40,000

No dividends were paid by any of the companies in the Emery Group for the year ended 31 December 2019. During the year 2019, some fixed assets with cost of $36,000,000 and accumulated depreciation of $20,000,000 were sold to outside parties for an amount of $11,000,000. There were no other disposals and purchase of fixed assets.

In early January 2019, Emery Pte Ltd acquired 80% of Faze Pte Ltd for a cash consideration of $65,000. On the date of acquisition, there were only two working capital items in Faze Pte Ltd’s Statement of Financial Position:

Debtors: $1,000,000

Inventories: $2,000,000

You were given an incomplete consolidated statement of financial position of the Emery Group as at 30 December 2019:

	2019	2018
	$,000	$,000
Cash at Bank	62,000	31,000
Debtors	145,000	88,000
Inventories	150,000	80,000
Fixed assets (net book value)	415,000	440,000
Associated companies	-	-
Goodwill	-	-
	-	-
Creditors	132,000	65,000
Tax payable	15,000	8,000
Non-controlling interest	-	-
Share capital	-	-
Retained profits	-	-
	-	-

Qns 1: With the available information, prepare the cash flows from operating activities section ONLY of the consolidated statement of cash flows for Emery Pte Ltd and its subsidiaries for the year ended 31 December 2019 using the indirect method.

Qns 2: “The doubling of cash at bank balance from $31 mil last year to $62 mil this year, coupled with decent group income after tax, provide a clear signal that the Emery group of companies is in the pink of health in solvency as well as profitability.” Comment on the above remark, in less than 100 words. Indicate your word count in brackets at the end of your answer.