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: Draft consolidated statements of financial position of Papaya Limited as at December 31, 2017 and 2018 were as follows: Profit for the year of Papaya Limited for the period ended December 31, 2018 had been arrived at after charging (crediting): The cash balance at December 31,2018 included an amount of 400,000. This was initially recorded at the exchange rate of 1=HK$9.50, and restated at the closing rate of 1= HK\$9.80. Papaya Limited acquired 70% of the share capital of Strawberry Limited on January 2, 2018. Papaya Limited issued 400,000 ordinary shares at $8 per share plus $700,000 cash as purchase consideration. The fair values of the identifiable assets and liabilities of Strawberry Limited at acquisition date were as follows: It is the group policy to recognize non-controlling interest using the net assets approach. Goodwill arising on acquisition is recorded as non-current assets less any accumulated impairment losses. During the year, no goodwill has suffered from any impairment. 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) 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: Draft consolidated statements of financial position of Papaya Limited as at December 31, 2017 and 2018 were as follows: Profit for the year of Papaya Limited for the period ended December 31, 2018 had been arrived at after charging (crediting): The cash balance at December 31,2018 included an amount of 400,000. This was initially recorded at the exchange rate of 1=HK$9.50, and restated at the closing rate of 1= HK\$9.80. Papaya Limited acquired 70% of the share capital of Strawberry Limited on January 2, 2018. Papaya Limited issued 400,000 ordinary shares at $8 per share plus $700,000 cash as purchase consideration. The fair values of the identifiable assets and liabilities of Strawberry Limited at acquisition date were as follows: It is the group policy to recognize non-controlling interest using the net assets approach. Goodwill arising on acquisition is recorded as non-current assets less any accumulated impairment losses. During the year, no goodwill has suffered from any impairment. 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