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: -

	SH000
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:-

	SH000
Direct wages	1,220
Telephone	70
Light, heat and power	210

(4) At 30 September 2020, depreciation is to be provided as follows:

	Per year on cost
Plant and machinery	20%
Furniture and equipment	10%

(5) Expenses are to be apportioned to the factory as follows:

	SH
Rates	4 / 5
Insurances	3 / 4
Telephone	2 / 3
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:

1. Prepare in vertical format, Manufacturing and statement of profit or loss for Jim Brothers for the year ended 30 September 2020 (10 Marks)

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 of the same.