Illustration 2 Following are the Balance Sheets of Metal Engineering Limited one actual as on 31st December, 2013 and other forecast as on 31st December, 2014: 2013 2014 (Actuals) (Forecast) Cash Debtors Stock Investments Plant (at cost) 18,400 49,000 61,900 1,00,000 2.20,000 4.49.300 1,36,800 83,200 92,500 90,000 2,40,000 6.42.500 a62 Accounts Payable 67,300 1,00,000 Debentures 73,500 50,000 Accumulated Depreciation 50,000 30,000 Equity Share Capital 1,25,000 1.75,000 Profit and Loss Account 1.33.500 2.87.500 4,49,300 6,42,500 The forecast Profit and Loss Account in a summarised form for the budget year ended 31st December, 2014 is as follows: 2,00,000 2,000 10,000 To Accumulated depreciation Administration and selling expenses Income-tax Interest charges Loss on sale of plant Net profit To Dividend (including CDT) Balance cld 22,000 By Gross profit Profit on the sale of investments 10,000 Interest 5,000 3,000 8,000 1.64.000 2,12,000 10,000 By Net profit 1,54,000 1.64.000 2,12,000 1,64,000 1.64.000 Additional information: New plant costing 780,000 was purchased during the year. 436 EP-CMA (ii) An old plant, costing 360,000 and with accumulated depreciation of 3 42,000 was sold for 10,000 (1) Investments costing 310,000 were sold for 12,000. Prepare a cash budget for the management of the company by Adjusted Profit and Loss method