have to answer all the q step by step to understand the answer

QUESTION 1:
Part A:
(i) Spending of $235,000 on overhaul of the equipment will be considered as asset since it will increase the productive capacity of the machine.
(ii) The cost of new computer system $250,000 and the installation cost of $5,000 will be considered as asset. $255,000 will be recognized in asset as computer.
The cost of $29,000 spent to train the employees to use the system will be recognized as expense since it cannot be directly allocated to the computer.
(iii) The purchased patent worth $280,000 will be recognized as asset.
But internally generated brand name cannot be recognized as asset and hence the amount spent on $220,000 will be recognized as expense.
Part B:
As per the definition given in SAC (Statement of Accounting Concept) 1, reporting entity are those where the management is separated from the ownership. In the given case of Superfresh Ltd, shareholders are involved in the day to day operation. So, management is not separate from ownership. But if a company incur debt or issue capital, then it will become a reporting entity. Since Superfresh Ltd is planning to borrow large amount of fund, so the company cannot be considered as a reporting entity.
QUESTION 2:
Superfresh Ltd
Statement of Cash Flows
For the year ended 30/06/2016
    CASH FLOWS FROM OPERATING ACTIVITIES
         Amount ($)
         Amount ($)
    Cash receipts from customers (Net Sales + Opening Accounts Receivable – Closing Accounts Receivable)
(1,708,774+$174,192-$258,288)
    1,624,678
     
    Cash paid to suppliers (Purchase + Closing Inventory – Opening Inventory + Opening Accounts Payable - Closing Accounts Payable)
(1,246,782+ 228,390 - 111,000 + 151,694 – 81,600)
    (1,434,266)
     
    Cash paid to employees (Opening wages payable – Closing wages...