The comparative Balance Sheets of the Anil Ltd. as on 30th June 2005 and 2006 are given below in condensed form:

Balance Sheets Liabilities 2005 2006 Assets 2005 2006 Rs. Rs. Rs. Rs.
Accounts Payable 28,000 48,000 Cash 28,100 20,000 Mortgage Debentures 50,000 — Accounts Receivable 30,800 21,100 Equity Capital 1,00,000 1,50,000 Prepaid Expenses 3,950 3,000 Premium on Shares — 10,000 Inventory 93,400 89,200 Retained Earnings 70,250 85,300 Fixed Assets 1,52,000 2,00,000 _______ _______ Accumulated Dep. — (60,000) — (40,000)
2,48,250 2,93,300 2,48,250 2,93,300

(a) Net income for the year Rs. 27,050.

(b) Depreciation for the year Rs. 10,000.

(c) Dividend declared during the year Rs. 12,000.

(d) An addition to the building was made during the year at a cost of Rs. 78,000 and fully depreciated equipment costing Rs. 30,000 was discarded, no salvage being realised.
Prepare the statement of cash flow.