The following trial balance was extracted from the books of SOSO (PVT) on 16th June, 2018.

ZMW

Capital 13,500

Returns outwards raw materials 250

Sales 22,050,

Returns outwards 413

Vehicles 475

Rent receivable 200

Trade payables 638

Issued share capital ordinary shares 4,125

Issued share capital preference shares 725

Share premium 450

Opening stock of raw material 780

Opening stock of work in progress 660

Purchases-raw materials 150

Dividend paid 1,970

Direct expenses 240

Retained earnings at 1/6/18 975

Inventory 825

Purchases 6,263

Returns inwards 350

Carriage inwards 13

Carriage inwards-raw materials 79

Rent factory 25

Fuel 17

Opening stocks-finished goods 978

Carriage outwards 125

Salesmens salaries 800

Wages and salaries 738

Land 12,500

Plant 1,562

Motor vehicles 1,125

Distribution costs 290

Interest paid 370

Taxation 750

Administrative expenses 286

Corporate tax paid 2,108

Directors remuneration 375

Trade receivables 3,875

Purchase of treasury bills 1,255

Receipt from sale of fixed assets 889

Repurchase of debenture loan 1,271

Cash at bank and in hand 3,990

Closing stock 1,750

Goodwill 1,866

Buildings 20,567

Mortgage loan 3,897

Drawings 900

Premium 780

Sundries 1,005

Commissions Paid 850

Commissions Received 1,280

Note of information not taken into the trial balance data: (a) Provide for:

(i)An audit fee of K68.

(ii) Income tax of K562.

(iii) Administrative expenses were prepaid by K72.

(iv) Prepaid premiums of K270

(v) Prepayment of premiums of K378

(vi) Discount received of K516

(vi) Commission paid of K183

Required:

Prepare: Cash Flow statement (20 Marks)