Topiary Bhd is a 60 years old company which principally engaged in the business of producing and processing palm products and natural rubber on its plantations. The consolidated statement of financial position and the consolidated statement of profit or loss of Topiary Bhd for the year ended 31 December 2021 are as follows: Consolidated Statement of Profit or loss for the year ended 31 December 2021 RM million Sales 7300 Cost of sales -5000 Gross Profit 2300 Operating expenses -1000 Operating profit 1300 Impairment of goodwill -100 Interest payable and similar charges -250 Profit before taxation 950 Taxation -350 Profit after taxation 600 Profit after taxation attributable to: Equity holders of parent 500 Non controlling interest 100 600 Consolidated Statement of Financial Position as at 31 December 2021 2021 2020 RM million RM million Tangible non-current assets 4,100 3,700 Goodwill 10 35 Net current assets 1,560 1,415 5,670 5,150 Called up share capital 1,200 1,200 Retained profits 2,100 1,900 3,300 3,100 Non-controlling interest 750 620 4,050 3,720 Non-current liabilities 1,300 1,200 Deferred taxation 320 230 5,670 5,150 5 On September 2021, Topiary Bhd acquired 75% interest in a competitor, Landscapes Bhd for cash payment of RM525million. This acquisition made Landscapes Bhd a subsidiary of Topiary Bhd and the group is using proportionate method to measure the NCI, at the date of acquisition. The statement of financial position of Landscapes at 1st September 2021 showed the following balances. RM million Tangible non current assets 500 Inventory 400 Trade receivables 300 Trade payables (200) Taxation (including deferred taxation) (80) Bank Overdraft (320) 600 Topiary Bhd finances a number (but not all) of its non current asset purchases using finance leases. In the period, non current assets which would have cost RM600million to purchase outright were acquired under finance leases. Depreciation charged in the consolidated statement of profit or loss for the period totaled RM970 million. There were no disposals of non-current assets in the period. Net current assets at the beginning and end of the year were as follows: 2021 2020 RM million RM million Inventory 1,500 1,600 Trade receivables 2,200 1,800 Trade payables (950) (850) Obligations under finance leases (500) (450) Bank overdraft (690) (685) 1,560 1,415 The sale of goods consists of the followings: RM million Palm products 3,600 Rubber 2,800 Manufacturing 800 6 Others 100 The current tax and deferred tax for the year ended were charged to the statement of profit or loss at RM300million and RM50million respectively.

a. Critically evaluate the consolidated statement of cash flows for Topiary Bhd for the year ended 31 December 2021 using the indirect method under IAS 7.

a brief explanation on consolidated statement as well