QUESTION $1(20$ Marks$)$REQUIREDUse the information provided below to prepare the Cash Flow Statement of Grenville Limited for the yearended $31$ December $2023.$INFORMATIONThe information given below was obtained from the records of Grenville Limited:STATEMENT OF FINANCIAL POSITION AS AT $31$ DECEMBER:$20232022$R RASSETSProperty, plant and equipment $($cost$)49800003240000$Accumulated depreciation $(1260000)(960000)$Long$-$term investments $1320000900000$Inventory $21000002580000$Accounts receivable $25200001800000$Bank $15000001320000111600008880000$EQUITY AND LIABILITIESOrdinary share capital $72000006000000$Retained earnings $30000002316000$Accounts payable $900000456000$Company tax payable $60000108000111600008880000$EXTRACT FROM THE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED$31$ DECEMBER $2023$RSales $8400000$Cost of sales $5304000$Depreciation $420000$EBIT$/$Operating profit $1500000$Interest income $120000$Company tax $480000$Profit after tax $1140000$ADDITIONAL INFORMATION The profit before the changes in working capital amounted to R$1920000.$ All purchases and sales of inventories were on credit. Equipment was purchased for cash. Vehicles with a cost price of R$720000$ and accumulated depreciation of R$120000$ were sold at carryingvalue. Interim dividends paid during the year amounted to R$456000.$ No final dividends were declared. The issued share capital for the year ended $31$ December $2023$ consisted of $500000$ ordinary shares.The market price of a share in Grenville Limited was $1500$ cents on $31$ December $2023.$ The creditors granted Grenville Limited credit terms of $30$ days. The following ratios were calculated at the end of $2023$ and $2022$:$20232022$Acid test ratio $4\mathrm{.}19$:$15\mathrm{.}53$:$1$Gross margin $36\mathrm{.}86\%49\mathrm{.}45\%$Average payment period $46$ days $29$ daysQUESTION $2(20$ Marks$)$REQUIREDUse the information provided in Question $1$ to answer the following questions$\mathrm{.}2\mathrm{.}1$ Calculate the following ratios for $2023$ only. Note: Use the formulas provided in the formula sheetonly $($that appear after QUESTION $5).$ Answers to the ratios must be expressed to two decimalplaces and be fully stated e$.$g$.23\mathrm{.}45\%$; $1\mathrm{.}34$:$1$ etc$\mathrm{.}2\mathrm{.}1\mathrm{.}1$ Net profit margin $(2$ Marks$)2\mathrm{.}1\mathrm{.}2$ Inventory turnover $(2$ Marks$)2\mathrm{.}1\mathrm{.}3$ Current ratio $(2$ Marks$)2\mathrm{.}1\mathrm{.}4$ Debt to assets $(2$ Marks$)2\mathrm{.}1\mathrm{.}5$ Average collection period $(2$ Marks$)2\mathrm{.}1\mathrm{.}6$ Earnings per share $(2$ Marks$)2\mathrm{.}1\mathrm{.}7$ Dividend yield $(2$ Marks$)2\mathrm{.}2$ Comment on the acid$-$test ratio, gross margin ratio and average payment period ratiothat were calculated for $2023$ and $2022.(6$ Marks$)$