QUESTION $1[11$ marks$]$

Arch Tech is a software development company that specialises in creating custom

business software solutions. The company has a $31$ December year$-$end.

You are presented with the Statement of Financial Position of Arch Tech for the year

ended $31$ December $2023$:

Assets $2023$

R

$2022$

R

Non$-$current assets

Property, plant, and equipment $120000108000$

Investment Bonds $240000240000$

$360000348000$

Current assets

Inventory $3600020000$

Trade receivables $2400018000$

Bank $6000049000$

$12000087000$

Total assets $480000435000$

Equity and liabilities

Equity

Capital $240000240000$

Retained earnings$/$Accumulated profit $174000126000$

Total equity $414000366000$

Liabilities

Non$-$current liabilities

Loan $4800054000$

$4800054000$

Current liabilities

Trade payables $1800015000$

$1800015000$

Total equity and liabilities $480000435000$

$4$ HFAC$130-1-$JanJun$2024-$SA$1-$GC$-$V$\mathrm{.}2-25032024$

The following transactions occurred during the $2023$ financial year:

$1.$ Arch Tech sold goods worth R$144000$ on credit.

$2.$ Arch Tech bought inventory worth R$100000$ on credit.

$3.$ Arch Tech paid R$12000$ for operating expenses.

$4.$ Arch Tech received dividends of R$6000$ from its investment.

$5.$ Arch Tech paid R$9600$ in income taxes.

$6.$ Arch Tech paid R$2400$ in interest expenses on the bank loan.

REQUIRED:

Prepare only the Operating Activities section of Arch Tech$$s Statement of Cash

Flows for the year ended $31$ December $2023$ using the direct method.