uividends paid and recommended during 2022 amounted to R300 000 . 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. \begin{tabular}{|c|} \hline Cost of sales \\ \hline Average inventory \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Earnings per share & X & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts receivable & X & 365 \\ \cline { 1 - 1 } \cline { 1 - 1 } Credit sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividend per share & X & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts payable & X & 365 \\ \hline Credit purchases & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets \\ \hline Current liabilities \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividends for the year & X & 100 \\ \hline No. of ordinary shares issued & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets - Inventory \\ \hline Current liabilities \\ \hline Cost of sales \\ \hline Average inventory \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Market price per share & & \\ \hline Earnings per share & & \\ \hline Earnings per share & x & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts receivable & X & 365 \\ \hline Credit sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividend per share & X & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts payable & X & 365 \\ \cline { 1 - 1 } Credit purchases & & 1 \\ \hline \end{tabular} FORMULA SHEET \begin{tabular}{|c|c|c|} \hline Gross profit & X & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total debt & X & 100 \\ \hline Total assets & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & X & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Non-current debt & X & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Operating profit & X & 100 \\ \cline { 1 - 1 } Total assets & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Operating profit \\ \hline Interest expense \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & x & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & X & 100 \\ \cline { 1 - 1 } \cline { 1 - 1 } No. of ordinary shares issued & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets \\ \hline Current liabilities \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividends for the year & X & 100 \\ \hline No. of ordinary shares issued & & 1 \\ \hline \end{tabular} 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: REQUIRED Use the information provided in QUESTION 4 to answer the following questions: 5.1 Calculate the following ratios (expressed to two decimal places) for 2022 only. Note: Use formulas provided in the formula sheet only (that appear after QUESTION 5). 5.1.1 Gross margin 5.1.2 Dividend per share (2 marks) 5.1.3 Return on assets (2 marks) 5.1.4 Current ratio (2 marks) 5.1.5 Acid test ratio (2 manis) 5.1.6 Debt to equity (2 marks) 5.1.7 Creditor payment period (2 marks) (2 marks) 5.2 Comment on the following ratios: 5.1.5 Acid test ratio 5.1.6 Debt to equity 5.1.7 Creditor payment period END OF PAPER QUESTION 4 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 uividends paid and recommended during 2022 amounted to R300 000 . 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. \begin{tabular}{|c|} \hline Cost of sales \\ \hline Average inventory \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Earnings per share & X & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts receivable & X & 365 \\ \cline { 1 - 1 } \cline { 1 - 1 } Credit sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividend per share & X & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts payable & X & 365 \\ \hline Credit purchases & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets \\ \hline Current liabilities \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividends for the year & X & 100 \\ \hline No. of ordinary shares issued & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets - Inventory \\ \hline Current liabilities \\ \hline Cost of sales \\ \hline Average inventory \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Market price per share & & \\ \hline Earnings per share & & \\ \hline Earnings per share & x & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts receivable & X & 365 \\ \hline Credit sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividend per share & X & 100 \\ \hline Market price per share & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Accounts payable & X & 365 \\ \cline { 1 - 1 } Credit purchases & & 1 \\ \hline \end{tabular} FORMULA SHEET \begin{tabular}{|c|c|c|} \hline Gross profit & X & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total debt & X & 100 \\ \hline Total assets & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & X & 100 \\ \hline Sales & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Non-current debt & X & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Operating profit & X & 100 \\ \cline { 1 - 1 } Total assets & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Operating profit \\ \hline Interest expense \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & x & 100 \\ \hline Equity & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Profit after tax & X & 100 \\ \cline { 1 - 1 } \cline { 1 - 1 } No. of ordinary shares issued & & 1 \\ \hline \end{tabular} \begin{tabular}{|c|} \hline Current assets \\ \hline Current liabilities \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Dividends for the year & X & 100 \\ \hline No. of ordinary shares issued & & 1 \\ \hline \end{tabular} 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: REQUIRED Use the information provided in QUESTION 4 to answer the following questions: 5.1 Calculate the following ratios (expressed to two decimal places) for 2022 only. Note: Use formulas provided in the formula sheet only (that appear after QUESTION 5). 5.1.1 Gross margin 5.1.2 Dividend per share (2 marks) 5.1.3 Return on assets (2 marks) 5.1.4 Current ratio (2 marks) 5.1.5 Acid test ratio (2 manis) 5.1.6 Debt to equity (2 marks) 5.1.7 Creditor payment period (2 marks) (2 marks) 5.2 Comment on the following ratios: 5.1.5 Acid test ratio 5.1.6 Debt to equity 5.1.7 Creditor payment period END OF PAPER QUESTION 4 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