QUESTION $4$

$(20$ MARKS$)$

REQUIRED

Use the information provided below to prepare the Cash Flow Statement of Alto Limited for the year ended $31$ December $2022.$

INFORMATION

The following amounts were obtained from the Statement of Comprehensive Income for the year ended $31$ December $2022$ and Statement of Financial Position of Alto Limited as at $31$ December $2022$ and $31$ December $2021$:

$31$ Dec $2022$

$31$ Dec $2021$

R

R

Sales

$11000000$

Cost of sales

$6500000$

Depreciation

$750000$

Operating profit

$1650000$

Interest expense

$450000$

Company tax for the year

$400000$

Property, plant and equipment $($carrying value$)$

$6250000$

$5000000$

Long$-$term investments

$350000$

$400000$

Inventories

$2150000$

$2050000$

Accounts receivable

$1700000$

$1700000$

Prepaid expenses

$200000$

$50000$

Cash and cash equivalents

$500000$

$350000$

Ordinary share capital $($All shares issued at R$10$ each$)$

$3100000$

$3100000$

Retained earnings

$3000000$

$2500000$

Non$-$current liabilities

$3600000$

$3350000$

Accounts payable

$1100000$

$200000$

Accrued expenses

$100000$

$70000$

Dividends payable

$200000$

$250000$

Company tax payable

$50000$

$80000$

Note:

$$

Dividends paid and recommended during $2022$ amounted to R$300000.$

$$

All purchases and sales of inventories are on credit.

$$

Some of the investments were redeemed during the financial year ended $31$ December $2022.$

$$

Debtors are granted credit terms of $30$ days.