From the following balance sheets and additional information relating to Precision Tools Ltd., prepare:

(i) Statement showing the Changes in the Working Capital, and

(ii) Statement of Sources and Application of Funds for the year ended 31st December, 2006.

Balance Sheet 31st December Assets 2005 2006 Rs. Rs.

Cash 1,600 1,776 Sundry Debtors 400 740 Stock of Raw Materials 220 248 Stock of Finished Goods 280 240 Stock of Work-in-progress 100 200 Land 160 160 Buildings 800 680 Plant and Machinery 600 680 Debenture Discount 80 72 Patents 40 36 4,280 4,792 Liabilities Sundry Creditors 1,000 1,030 Bills Payable 200 250 Debentures 880 880 Depreciation Fund 200 112 Reserves and Surplus 600 780 Share Capital 1,400 1,740 4,280 4,792

(a) Net Profit reported Rs. 4,00,000

(b) Dividend paid Rs. 80,000

(c) Depreciation charged to profits Rs. 32,000

(d) The company issued equity shares for Rs. 2,00,000 and bonus shares for Rs, 1,40,000.

(e) A building was sold off for Rs. 56,000, the cost and book value being Rs. 1,60,000, and Rs. 40,000 respectively.