The following summarised information has been extracted from the financial statements of Spring Berhad for the year ended 31 December 2020, together with comparative Statement of Financial Position figures for the previous year Spring Berhad Statement of Comprehensive Income for the Year Ended 31 December 2020 Note RM'000 Revenue 128,900 Cost of sales 1 (21.200) 107,700 Gross profit Distribution costs Administrative expenses (35,000) 1 (33,200) 5,050 Profit on disposal of freehold buildings Loss on disposal of delivery van Profit from operations (9.450) 35.100 Interest income 1,600 Interest expense (paid) (700) Profit before taxation 36,000 Tax expense (9.700) Net profit for the year 26 300 Spring Berhad Statements of Financial Position as at 31 December Note 2020 2019 RM'000 RM'000 RM'OOO RM'000 ASSETS Non-current Assets 2 309,040 272,000 Current Assets Inventories 7,780 6,500 Trade receivables 58,360 34,670 Interest receivable 2,000 4,000 Investments 3 9,100 11,300 Cash and bank balances 78,060 47.360 155.300 103,830 Total Assets 464,340 375.830 EQUITY AND LIABILITIES Share Capital and Reserves Ordinary share capital Retained earnings 290,000 170,000 28,260 22.400 318,260 192.400 Non-current Liabilities Non-current Liabilities 5% Loan payable 60,000 80,000 Deferred tax 5.590 4,640 65,590 Current Liabilities 84,640 Bank overdraft 8,800 14,280 Trade payables 58.710 78.200 Proposed dividend 11,880 5,920 Tax liabilities 1.100 390 80,490 98.790 Total Equity and Liabilities 464,340 375,830 Notes to the financial statements: 1. The depreciation charge for the year in respect of the company's freehold buildings, furniture and fixtures, and delivery vans has been included in cost of sales, distribution costs and administrative expenses, respectively 2. The movements in freehold buildings, furniture and fixtures, and delivery vans during the year were as follows: Freehold Buildings Furniture & Fixtures Delivery Vans Total RM OOO RM'000 RM'000 RM'000 Cost At 1 January 2020 155,000 95,000 110,000 360,000 Additions 55 400 20.000 34600 110000 Freehold Buildings Delivery Vans Total Furniture & Fixtures RM'OOO RM 'Ooo RM'OOO RM'OOO Cost: 155,000 At 1 January 2020 Additions 95,000 110,000 360,000 55,400 20,000 34,600 110,000 Disposals (45,000) (15,000) (60,000) At 31 December 2020 165,400 115,000 129,600 410,000 50,000 18,000 20,000 88,000 Depreciation: At 1 January 2020 Eliminated on disposals Charge for the year At 31 December 2020 (9,000) (2,040) (11,040) 7,040 8.000 8.960 24.000 100.960 48,040 26,000 26.920 Net book value: At 31 December 2020 117,360 89.000 102,680 309,040 At 1 January 2020 105,000 77,000 90,000 272.000 3. Current asset investments 2020 2019 RM'000 RM'000 7,800 5,600 Investments being held for more than 3 months Investments being held for less than 3 months 1.300 5.700 3 Current asset investments 2020 2019 RM'000 RM'000 Investments being held for more than 3 months Investments being held for less than 3 months 7,800 5,600 5.700 1.300 9.100 11.300 4 Total dividends paid and proposed on 21 December 2020 amounted to RM20,440,000. Required: (a) Prepare the Statement of Cash Flows for Spring Berhad for the year ended 31 December 2020, in accordance with the provisions of MFRS 107 Statement of Cash Flows. (23 marks) (b) Prepare the supporting notes indicating the composition of cash and cash equivalents at the year end, together with comparative figures for the previous year. (2 marks) (c) Discuss whether the statement of cash flows is linked to the statement of comprehensive income and statement of financial position