Prepare schedule of changes in NWC by taking the data of Example 2 by considering proposed dividend and provision for tax as an appropriation of profits.

Data from Example 2

Prepare schedule of changes in net working capital.

Additional Information:

(i) Dividend paid during the year was ₹2,90,000 and tax paid during the year was ₹85,000.

(ii) Depreciation provided on fixed assets was ₹70,000.

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A. Sources of Funds Share capital Proposed dividend Bank overdraft Sundry creditors Provision for tax Short-term loan B. Application of Funds Fixed assets Investments (short-term) Stock Sundry Debtors Bank Comparative Balance Sheet Particulars 2010 (²) 4,50,000 3,00,000 56,000 1,68,000 75,000 4,00,000 50,000 2,40,000 2,10,000 1,49,000 2011 (²) 9,50,000 2,10,000 1,68,000 3,34,000 1,10,000 2,70,000 6,20,000 5,60,000 2,10,000 4,55,000 1,97,000