Papaya Limited is a company incorporated in Hong Kong. Its main business is the sales of fresh papaya. The financial year end of Papaya Limited is December 31. Draft consolidated statement of profit or loss of Papaya Limited for the year ended December 31, 2018 was as follows: Sales Cost of sales Gross profit Selling and distribution expenses General and administrative expenses Share of profit in associates Unrealized exchange gain (loss) Profit before tax (note 1) Tax expense Profit after tax Attributable to: Equity holders of the parent Non-controlling interest Non-current asset Property, plant and equipment Goodwill Investment in associates Current assets Inventories Trade receivable Cash and cash equivalents Draft consolidated statements of financial position of Papaya Limited as at December 31, 2017 and 2018 were as follows: Less current liabilities Trade payable Interest payable Tax payable $'000 28,000 (14,000) 14,000 Net current assets (liabilities) Total assets less current liabilities (900) (800) 1,500 120 13,920 (700) 13,220 2018 $'000 9,420 3,800 1,200 1,000 900 2017 S'000 7,500 3,200 1,810 500 1,400 1,100 10,710 4,800 2,500 1,300 3,500 1,400 8,120 4,500 14,120 7,200 900 800 700 3,100 2,400 11,020 4,800 21,730 9,600 Required: (a) Prepare the consolidated statement of cash flows for Papaya Limited for the year ended December 31, 2018 in accordance with HKAS 7 Statement of Cash Flows, using the indirect method to prepare cash flows from operating activities. (20 marks) (b) With reference to relevant financial reporting and accounting standards, discuss the appropriate accounting classification and treatment of bank loan recorded on the financial statement of Papaya Limited. (5 marks)