*Handwritten Answers only*

Al Technologies Limited is evaluating an Electronics Project and would like you to prepare a Cash flow statement relating to Equity and a Cash flow statement relating to Total Resources.? ( 30 Marks) For the purpose you are provided the following information: The total outlay is Rs.50 million made up of Rs.30 million of Fixed Assets and Rs.20 million of Current Assets. The total outlay is to be financed by Rs. 15 million in Equity, Rs.20 million Term Loans, Rs. 10 million Bank Finance for Working capital and Rs.5 million of Trade Credit. The Term Loan is repayable in five equal annual instalments of Rs.4 million each. The first instalment will be due at the end of the first year and the last instalment at the end of the fifth year. The levels of Bank Finance for Working Capital and Trade Credit will remain at Rs.10 million and Rs.5 million till they are paid back or retired at the end of five years. The Interest rates on Term Loan and Bank Finance for Working Capital will be 10 % and 12 % respectively. The expected Revenues from the Project will be Rs.60 million per year. The Operating Costs excluding Depreciation will be Rs.42 million. The Depreciation rate on the Fixed Assets will be 15% and calculated as per the Written down value method. The net salvage value of Fixed Assets and Current Assets at the end of year 5 will be Rs.5 million and Rs.20 million respectively. The tax rate applicable to the firm is 30 %. Al Technologies Limited is evaluating an Electronics Project and would like you to prepare a Cash flow statement relating to Equity and a Cash flow statement relating to Total Resources.? ( 30 Marks) For the purpose you are provided the following information: The total outlay is Rs.50 million made up of Rs.30 million of Fixed Assets and Rs.20 million of Current Assets. The total outlay is to be financed by Rs. 15 million in Equity, Rs.20 million Term Loans, Rs. 10 million Bank Finance for Working capital and Rs.5 million of Trade Credit. The Term Loan is repayable in five equal annual instalments of Rs.4 million each. The first instalment will be due at the end of the first year and the last instalment at the end of the fifth year. The levels of Bank Finance for Working Capital and Trade Credit will remain at Rs.10 million and Rs.5 million till they are paid back or retired at the end of five years. The Interest rates on Term Loan and Bank Finance for Working Capital will be 10 % and 12 % respectively. The expected Revenues from the Project will be Rs.60 million per year. The Operating Costs excluding Depreciation will be Rs.42 million. The Depreciation rate on the Fixed Assets will be 15% and calculated as per the Written down value method. The net salvage value of Fixed Assets and Current Assets at the end of year 5 will be Rs.5 million and Rs.20 million respectively. The tax rate applicable to the firm is 30 %