The Statement of Financial Position as at: Non-current Assets Trade payables 31 Oct 2021 31 Oct 2020 Current tax ROOO ROOD ROOO RO00 Accrued interest Property, plant and equipment 4,676 4,248 Development expenditure 417 494 Current Assets 5,093 4,742 Provision for redundancy costs 606 509 Inventory Total Equity and Liabilities Trade receivables 456 372 Cash and cash equivalents 1,989 3,051 205 1,086 Statement of Comprehensive Income for the year end 8,144 5,828 Total Assets Equity and Liabilities Revenue Equity shares of R1 each 3,780 2,180 Cost of sales Share premium 1,420 620 Revaluation reserve 560 260 Administrative expenses Retained earnings 1,314 7,074 1,250 4,310 Distribution costs Non-current liabilities Finance cost Long term borrowings 360 715 Deferred tax 210 570 170 885 Taxation Current liabilities Trade payables Current tax Accrued interest 70 225 425 310 170 3 31 Oct 2020 31 Oct 2021 ROOO ROOO ROOO ROOO Provision for redundancy costs 0 500 150 633 Total Equity and Liabilities 8,144 5,828 Statement of Comprehensive Income for the year ended 31 October 2021 Revenue ost of sales dministrative expenses stribution costs ance cost ation ROOO RO00 6,640 (3,530) 3,110 (2,040) (788) (2,828) 282 (16) 266 120 Profit for the year Other Comprehensive Income 146 Gain on revaluation of property, plant and equipment P3 300 446 Additional information: (i) (ii) (iii) (iv) (v) (vi) On 1 November 2010, YG issued 1,600,000 R1 ordinary shares at a premium of 50%. No other finance was raised during the year. YG paid a dividend during the year. Plant and equipment disposed of in the year had a net book value of R70,000; cash received on disposal was R66,000. Any gain or loss on disposal has been included under cost of sales. Cost of sales includes R145,000 for development expenditure amortised during the year. Depreciation charged for the year was R250,000. The income tax expense for the year to 31 October 2021 is made up as follows: Corporate income tax Deferred tax ROOO 80 40 120 (vii) During the year to 31 October 2020 YG set up a provision for redundancy costs arising from the closure of one of its activities. During the year to 31 October 2021, YG spent R177,000 on redundancy costs, the additional cost being charged to administrative expenses. Required: (a) Prepare a statement of cash flows, using the indirect method, for YG for the year ended 31 October 2021, in accordance with IAS 7 Statement of Cash Flows. (20 marks) (b) Someone you have known for many years has heard that you work for YG, a well known international entity. There are rumours in the press that YG's latest share issue was to raise cash to enable it to launch a takeover bid for another entity. Your friend wants to treat you to dinner at an expensive local restaurant, so that you can give him details of the proposed takeover before it is made public. you I would respond to your friend. in how