Extracts from the consolidated financial statements of PolyCom Limited for the year ended 31 December 2017 are given below: Consolidated statement of profit and loss of PolyCom Limited for the year ended 31 December 2017 $000 Revenue 180,000 Cost of sales (119,500) Gross profit 60,500 Distribution costs (7,000) Administrative expenses (11,000) Share of associates' profits (net of tax) 290 Interest expense (2,800) Profit before tax 39,990 Income tax (12,500) Profit after tax 27,490 Attributable to: Owners of the parent 25,660 Non-controlling interests 1,830 27,490 Consolidated statements of financial position as at 31 December 2017 2016 $000 so00 Assets Property, plant and equipment 105,700 88,100 Goodwill 9,120 8,320 Investment in associates 960 1,200 Inventories 56,540 65,800 52,600 Accounts receivable 54,260 7,800 3,740 Bank 214,320 239,820 Equity and liabilities 56,000 Ordinary shares 64,400 52,190 36,680 Retained profits 3,840 5,230 Non-controlling interest 65,620 66,680 Trade payables 2,880 2,720 Interest payables 10,900 12,200 Tax payables 38,400 Long-term bank loans 36,400 214,320 239,820 The following information is available: There were no disposals of non-current assets during the year of 2017. Depreciation of $15,900,000 was included in the cost of sales in arriving at the profits for the year 1. ended 31 December 2017 Dividend paid by PolyCom Limited during the year amounted to S10,150,000. 2. On 1 January 2017, PolyCom Limited acquired 80 % of the issued ordinary shares of Excele Limited. The purchase consideration was settled by issue of 4 million of its own ordinary shares plus $400,000 cash. PolyCom Limited's shares are traded at $2.1 per share 3. at the date of acquisition The net assets of Excele Limited at the date of acquisition were assessed as having the following fair values: $000 8,400 Property,plant and equipment (net) 3,300 Inventories 2,600 Trade receivables 100 Bank (3,900) Trade payables Tax payables (500) 10,000 Required: Prepare a consolidated statement of cash flows for PolyCom Limited for the year ended 31 December 2017 in accordance with HKAS 7 Statement (a) of Cash Flows, using the indirect method to calculate cash flows from operating activities. (b) Based on your answer in part (a), briefly comment on the cash flow positions of PolyCom Limited. Extracts from the consolidated financial statements of PolyCom Limited for the year ended 31 December 2017 are given below: Consolidated statement of profit and loss of PolyCom Limited for the year ended 31 December 2017 $000 Revenue 180,000 Cost of sales (119,500) Gross profit 60,500 Distribution costs (7,000) Administrative expenses (11,000) Share of associates' profits (net of tax) 290 Interest expense (2,800) Profit before tax 39,990 Income tax (12,500) Profit after tax 27,490 Attributable to: Owners of the parent 25,660 Non-controlling interests 1,830 27,490 Consolidated statements of financial position as at 31 December 2017 2016 $000 so00 Assets Property, plant and equipment 105,700 88,100 Goodwill 9,120 8,320 Investment in associates 960 1,200 Inventories 56,540 65,800 52,600 Accounts receivable 54,260 7,800 3,740 Bank 214,320 239,820 Equity and liabilities 56,000 Ordinary shares 64,400 52,190 36,680 Retained profits 3,840 5,230 Non-controlling interest 65,620 66,680 Trade payables 2,880 2,720 Interest payables 10,900 12,200 Tax payables 38,400 Long-term bank loans 36,400 214,320 239,820 The following information is available: There were no disposals of non-current assets during the year of 2017. Depreciation of $15,900,000 was included in the cost of sales in arriving at the profits for the year 1. ended 31 December 2017 Dividend paid by PolyCom Limited during the year amounted to S10,150,000. 2. On 1 January 2017, PolyCom Limited acquired 80 % of the issued ordinary shares of Excele Limited. The purchase consideration was settled by issue of 4 million of its own ordinary shares plus $400,000 cash. PolyCom Limited's shares are traded at $2.1 per share 3. at the date of acquisition The net assets of Excele Limited at the date of acquisition were assessed as having the following fair values: $000 8,400 Property,plant and equipment (net) 3,300 Inventories 2,600 Trade receivables 100 Bank (3,900) Trade payables Tax payables (500) 10,000 Required: Prepare a consolidated statement of cash flows for PolyCom Limited for the year ended 31 December 2017 in accordance with HKAS 7 Statement (a) of Cash Flows, using the indirect method to calculate cash flows from operating activities. (b) Based on your answer in part (a), briefly comment on the cash flow positions of PolyCom Limited