The financial information of RIDE Limited for the financial year ended $31$ January $2023$ was

extracted from the annual report:

Statement of Financial Position as at $31$ January $2023$

Assets $20232022$

BACHELOR OF COMMERCE IN ACCOUNTING YEAR $1$ ACADEMIC AND ASSESSMENT CALENDAR

REGENT BUSINESS SCHOOL $($RBS$)$ JULY $202327$

Non$-$current assets

Property, Plant and Equipment $2435000023980000$

Current assets

Inventory $9500001250000$

Accounts receivable $420000680000$

Cash and Cash equivalents $1955000785000$

$33250002715000$

Total assets $2767500026695000$

Equity and liabilities

Equity

Share capital $2235000018560000$

Retained income $14200001769000$

$2377000020329000$

Non$-$current liabilities

Loan $12\%22000004500000$

Current liabilities

Accounts payable $8500001255000$

Taxes SARS $9500066000$

Shareholders for dividends $760000545000$

$17050001866000$

Total equity and liabilities $2767500026695000$

Statement of Comprehensive Income for the year ended $31$ January $2023$

$20232022$

Sales $1350000011650000$

Cost of sales $-7410000-6325000$

Gross profit $60900005325000$

Distribution, Administration and other

expenses $-3912000-2105000$

Operating expenses $36120001860000$

Depreciation $300000245000$

Operating profit $21780003220000$

Interest on loan $-395000-650000$

Profit before tax $17830002570000$

Tax $-782000-495000$

BACHELOR OF COMMERCE IN ACCOUNTING YEAR $1$ ACADEMIC AND ASSESSMENT CALENDAR

REGENT BUSINESS SCHOOL $($RBS$)$ JULY $202328$

Additional information:

$1.$ The company purchases all inventory on credit.

$2.$ The share issue price if R$9$ each. New shares were issued on $1$ September $2022.$ The shares

are currently selling for R$11,50$ each.

$3.$ Equipment with a carrying value of R$525000$ was sold during the year. Motor vehicles were

purchased in the last quarter of the financial year. The accounting policy requires depreciation to be

calculated on the diminishing value method.

$4.$ Interim and final dividends of R$1350000$ were declared to the shareholders.

Required:

$1.$ Prepare the cashflow statement for the year ended $31$ January $2023[25]$

$2.$ Assess the financial health of the company from the cashflow statement $[5]$