BEST ACCOUNTING BERHAD has provided following statement as at 30 June 2020: Statement of comprehensive income for the year ended 30 June 2020 RM Turnover 1,080,000 Cost of sales (540,000) Gross profit 540,000 Selling & administrative cost (480,000) Net operating profit Interest expense (15,000) Net profit before tax 45,000 Taxation (10,000) Net profit after tax 35.000 60,000 2019 (RM) 6,000 Statement of financial position as at 30 June 2020 2020 (RM) Assets Cash at bank Trade receivables 140,000 Inventory 480,000 Prepaid insurance 10,000 Equipment 455.000 Accumulated depreciation (90.000) 1.001.000 20,000 60,000 240,000 15,000 480,000 (70,000) 745,000 Equities and Liabilities Ordinary share capital Retained earnings Trade payables Final dividend payable Interest payable Tax payable Debentures 15.000 551.000 160.000 6,000 8,000 1.000 260,000 1.001.000 10,000 536.000 110,000 5.000 1.000 3,000 80,000 745.000 Other available information: i Selling and administrative cost above is represented by depreciation expense of RM80,000, loss on disposal of equipment of RM10,000 and other operating expenses of RM390,000 During the year an equipment worth RM75,000 was acquired. There was equipment disposed during the year 111 Dividend were declared and paid during the year IV. Debenture amounting to RM20,000 was redeemed at nominal value and new debentures were issued during the financial year. In in accordance with MFRS107(IAS 7) Statement of cashflow, required: a. Prepare Statement of cashflow for the year ended 30 June 2020 using the indirect method. (15 marks) b. Interpret the results of the statement prepared in (a) with reference to purpose of Statement of cashflow as outlined in MFRS 107. (7 marks) c. Briefly explain the concept of cash and cash equivalents as outlined in MFRS 107