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Balance Sheet at the End of Year 2020 (in Rs. Crore) Liabilities Asset Share Capital 400 Fixed Assets 720 Reserves and Surplus 80 Investments Secured

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Balance Sheet at the End of Year 2020 (in Rs. Crore) Liabilities Asset Share Capital 400 Fixed Assets 720 Reserves and Surplus 80 Investments Secured Loans 320 Current Assets 720 Unsecured Loans 200 Cash 80 Current Liabilities 360 Receivables 320 Provisions 80 Inventories 320 1440 1440 The projected income statement and the distribution of earning is given below: Projected Income Statement for year 2021 (in Rs. Crore) Sales 1600 Cost of Goods Sold 1200 Depreciation 80 Profit before interest and tax 320 Interest 80 Profit before tax 240 Tax 120 Profit after tax Dividend 40 Retained earnings 80 During the year 2021, the firm plan to raise a secured loan of Rs. 80 crores, repay previous term loan to extent of Rs 20 crore, and increase unsecured loans by Rs. 40 crores. Current Liabilities and provision are unchanged. Further, the firm plans to acquire fixed assets worth Rs. 120 crores and increase its inventory by Rs. 40 crores. Receivables are expected to increase by Rs. 60 crores. Other assets would remain unchanged, excepting, of course, cash. The firm plan to pay Rs. 40 crores by way of equity dividend. The level of cash would be the balancing amount in the projected balance sheet. Given the above information, prepare the following: a. Projected cash flow statement (3) b. Projected balance sheet (3M) 120

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