QUESTION $4$

$(20$ Marks$)$

REQUIRED

Prepare the Cash Flow Statement of Volpes Ltd for the year ended $31$ December $2023$

INFORMATION

Excerpts of the financial statements of Volpes Ltd are as follows:

$\begin{array}{cc}\text{S}\text{T}\text{A}\text{T}\text{E}\text{M}\text{E}\text{N}\text{T}OF\text{C}\text{O}\text{M}\text{P}\text{R}\text{E}\text{H}\text{E}\text{N}\text{S}\text{I}\text{V}\text{E}\text{I}\text{N}\text{C}\text{O}\text{M}\text{E}\text{F}\text{O}\text{R}\text{T}\text{H}\text{E}\text{Y}\text{E}\text{A}\text{R}\text{E}\text{N}\text{D}\text{E}\text{D}31\text{D}\text{E}\text{C}\text{E}\text{M}\text{B}\text{E}\text{R}2023& ?\\ ?& R\\ \text{S}\text{a}\text{l}\text{e}\text{s}& 5760000\\ \text{C}\text{o}\text{s}\text{t}of\text{s}\text{a}\text{l}\text{e}\text{s}& 3070000\\ \text{O}\text{p}\text{e}\text{r}\text{a}\text{t}\text{i}\text{n}\text{g}\text{p}\text{r}\text{o}\text{f}\text{i}\text{t}& 1990000\\ \text{I}\text{n}\text{v}\text{e}\text{s}\text{t}\text{m}\text{e}\text{n}\text{t}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}& 170000\\ \text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}& 230000\\ \text{C}\text{o}\text{m}\text{p}\text{a}\text{n}\text{y}\text{t}\text{a}\text{x}& 460000\\ \text{P}\text{r}\text{o}\text{f}\text{i}\text{t}\text{a}\text{f}\text{t}\text{e}\text{r}\text{t}\text{a}\text{x}& 1470000\end{array}$

STATEMENT OF FINANCIAL POSITION AS AT $31$ DECEMBER:

$\backslash$table$[[,2023($R$),2022($R$)],[$ASSETS$,,],[$Plant and machinery,$3250000,3090000],[$Long$-$term investment,$2410000,2410000],[$Inventories$,410000,440000],[$Trade and other receivables $($All accounts receivable$),1000000,1060000],[$Cash and cash equivalents,$390000,150000],[$Total assets,$7460000,7150000],[,,],[$EQUITY AND LIABILITIES,$2400000,1500000],[$Ordinary share capital,$1230000,260000],[$Retained earnings,$2500000,4000000],[$Long$-$term borrowings,$1100000,1230000],[$Trade and other payables $($All accounts payable$),7460000,7150000],[$SARS: Company tax,,$160000],[$Total equity and liabilities,,$]]$

Additional information

Additional plant and machinery were purchased during $2023.$ There were no other non$-$current asset acquisitions or disposals. Depreciation for $2023$ amounted to R$790000$

An interim dividend of R$500000$ was paid on ordinary shares during $2023.$

All the sales were on credit.

There were $1800000$ shares in issue during $2023$ after the additional shares were sold.