2 The following balances appears in the book of astute limited on 31 December 20.7 Share Capital 20.7 276 500 20.6 626 500 Non Distributed Reserved Arising From The 14 000 Revaluation Of Land And Building Retained Earnings 172 5500 Equipment At Cost 353 500 71 050 227 500 Accumulated Depreciation Equipment 77 000 70 000 Land And Buildings At Valuation 73 500 42 000 Trade Receivables Inventories Trade Payables Bank (Favorable) Petty Cash 32-Day Notice Deposit Prepaid Expenses Accrued Rent Expenses SARS (Income Tax) 108 500 77 000 34 250 3 000 10 000 17 500 21 000 4 200 45 500 140 00 105 000 150 500 39 000 1 250 6.300 7 000 3 500 Calculation of retained earnings for the year ended 31 December 20.7 Sales revenue Cost of Sales Gross profit Profit on disposal of equipment Rent income R 2 496 900 2 111 900 385 000 7 000 31.500 423 500 Expenses: Depreciation-Equipment Interest Expenses Finance cost with respect to hire purchases Sundry expenses Profit before taxation Taxation Net profit after taxation Dividends declared 35 000 28 000 10 500 164 500 185 500 31 500 154 000 52 5000 101 500 Retained earnings for the year Retained earnings at the beginning of the year Retained earning at the end of the year 71 050 172 550 Additional information Equipment with a cost price of r 42 000 was sold during the year. The accumulated depreciation at date of sale amounted to R 28 000. New equipment was purchased to replace that which was sold. The prepaid and operating expenses relate to normal operating activities of the entity and exclude interest expenses. Required: Use the Standard six steps and prepare the Cash flow Statement and also include all applicable notes of Zenande Ltd for the year ended 30 June 20.7. Note Ignore VAT and show all your workings (70 marks)