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don't copy from Chegg or other websites... straight away report against your answer. I will give 10 downvotes You are given below the Profit &
don't copy from Chegg or other websites... straight away report against your answer. I will give 10 downvotes
You are given below the Profit & Loss Accounts for two years for a company. Profit and Loss Account Yea1 Vear 2 8,00,00,000 10,00,00,000 1,00,00,000 1,50,00,000 10,00,000 10,00,000 Opening stock To Raw materials Stores Manufacturing Expenses to Other Expenses to Depreciation Net Profit 80,00,000 3,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,30,00,000 9.10,00.000 1,00,00,000 By Sales 4,00,00,000 By Closing stock 1,20,00,000 By Misc. Income 1.60,00,000 1,00,00.000 1,00,00,000 1.80,00.000 11.60.00.000 . 9,10,00,000 11,60,00,000 Sales are expected to be + 12,00,00,000 in year 3. As a result, other expenses will increase by + 50,00,000 besides other charges. Only raw materials are in stock. Assume sales and purchases are in cash terms and the closing stock is expected to go up by the same amount as between year 1 and 2. You may assume that no dividend is being paid. The Company can use 75% of the cash generated to service a loan. How much cash from operations will be available in year 3 for the purpose? Ignore income tax. You are given below the Profit & Loss Accounts for two years for a company. Profit and Loss Account Yea1 Vear 2 8,00,00,000 10,00,00,000 1,00,00,000 1,50,00,000 10,00,000 10,00,000 Opening stock To Raw materials Stores Manufacturing Expenses to Other Expenses to Depreciation Net Profit 80,00,000 3,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,00,00,000 1,30,00,000 9.10,00.000 1,00,00,000 By Sales 4,00,00,000 By Closing stock 1,20,00,000 By Misc. Income 1.60,00,000 1,00,00.000 1,00,00,000 1.80,00.000 11.60.00.000 . 9,10,00,000 11,60,00,000 Sales are expected to be + 12,00,00,000 in year 3. As a result, other expenses will increase by + 50,00,000 besides other charges. Only raw materials are in stock. Assume sales and purchases are in cash terms and the closing stock is expected to go up by the same amount as between year 1 and 2. You may assume that no dividend is being paid. The Company can use 75% of the cash generated to service a loan. How much cash from operations will be available in year 3 for the purpose? Ignore income taxStep by Step Solution
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