31 Dec 2022	31 Dec 2021
	R	R
Sales	11 000 000
Cost of sales	6 500 000
Depreciation	750 000
Operating profit	1 650 000
Interest expense	450 000
Company tax for the year	400 000
Property, plant and equipment (carrying value)	6 250 000	5 000 000
Long-term investments	350 000	400 000
Inventories	2 150 000	2 050 000
Accounts receivable	1 700 000	1 700 000
Prepaid expenses	200 000	50 000
Cash and cash equivalents	500 000	350 000
Ordinary share capital (All shares issued at R10 each)	3 100 000	3 100 000
Retained earnings.	3 000 000	2 500 000
Non-current liabilities	3 600 000	3 350 000
Accounts payable	1 100 000	200 000
Accrued expenses.	100 000	70 000
Dividends payable	200 000	250 000
Company tax payable	50 000	80 000

Question:

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:

Answer structure

ALTO LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022
	Workings (if any)	R
Cash flows from operating activities
Profit before interest and tax/Operating profit
Adjustments to convert to cash from operations
Profit before working capital changes
Working capital changes
Cash generated from operations
Cash flows from investing activities
Cash flows from financing activities
Net
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year