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a) Ruiru Brothers, a manufacturing company, produces the following balances from its books at 30th September 2020 Stocks at 1 October 2019: SHS 000S Raw

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a) Ruiru Brothers, a manufacturing company, produces the following balances from its books at 30th September 2020 Stocks at 1 October 2019: SHS 000S Raw materials 7.450 Work-in-progress(factory cost) 5,330 Finished goods(transfer value) 12,110 Purchases of raw materials 128,740 Purchases returns 310 Direct expenses 3,280 Return inwards 1.215 Carriage inwards 1,055 Rates 5,250 Light, heat and power 3,270 Direct Wages 187.240 Indirect Wages 14,320 Telephone 890 Factory repaiShs 2,215 Insurances 1.420 Factory salaries 38,000 Office salaries 24,000 Sales salaries 27,435 Plant & machinery (at cost) 160,000 Provision for depreciation of plant & machinery at 1 October 2019 64,000 Bad debts (written off) 325 Sales 721,560 Furniture & equipment (at cost) -Factory 42,000 |-Office 48,000 Provision for depreciation of furniture & equipment at 1 October 2019 -Factory 8,400 -Office 9,600 Additional information: (1) Closing stocks at 30 September 2020 are as follows: - SH'000 Raw materials 6,325 Work-in-progress(factory cost 6,105 Finished goods(transfer value) 15.225 (2) Prepayments at 30 September 2020:- SH000 Rates 450 Insurance 220 (3) Accruals at 30 September 2020:- SHOOD Direct wages 1.220 Telephone Light, heat and power210 (4) At 30 September 2020, depreciation is to be provided as follows: 70 Per year on cost 20% Plant and machinery Furniture and equipment 10% (5) Expenses are to be apportioned to the factory as follows: SH Rates 3/41 Insurances Telephone 12/31 Light, heat and power 3/4 (6) It is the policy of the company to transfer goods manufactured to the warehouse at factory cost plus 15% Required: a) Prepare in vertical format, Manufacturing and statement of profit or loss for Jim Brothers for the year ended 30 September 2020 (10 Marks) b) The information in cash flow statements if used with information on other financial statements can prove useful to various users. Explain any five benefits external users can generate from assessment the same. (5 Marks) c) Add a question for 5 marks of

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