REQUIRED: 1. Prepare the operating activities section of the statement of cash flows for the year ended 31 December 2023 using the direct method in accordance with IAS 7, Statement of Cash Flows. Show all workings clearly and reference accordingly. (18 marks) 2. Prepare a reconciliation between profit before tax and cash generated from operations using the indirect method. (7 marks)

Electrify (Pty) Ltd is a retailer of home solar power systems. The company has a 31 December financial year-end. The following balances were extracted from its trial balance for the financial year ends 31 December 2023 and 2022 respectively: Extract from the trial balance of Electrify (Pty) Ltd: - New plant and equipment were purchased during the year amounting to R700 000. - Equipment with a carrying amount of R60 000 was sold at a profit of R6 800 . - The depreciation expense and wear and tear allowance for tax purposes are the same. - There are no other temporary differences. - Assume a tax rate of 28%