Illustration 3 The balance sheets of Sun Ltd. for the years ended 31st March 2006 and 2005 were summarised thus: 2006 2005 Rs. Rs. Equity Share Capital 60,000 50,000 Reserves: Profit and Loss Account 5,000 4,000 Current Liabilities: Creditors 4,000 2,500 Taxation 1,500 1,000 Proposed dividends 2.000 1.000 72.500 58.500 Fixed Assets (at w.d.v.) Premises 10,000 10,000 Fixtures 17,000 11,000 Vehicles 12,500 8,000 Short-term investments 2,000 1,000 C73 Current Assets Stock 17,000 14,000 Debtors 8,000 6,000 Bank and Cash 6,000 8,500 72.500 58.500 and the profit and loss account for the year ended 31st March, 2006 disclosed Rs. Profit before tax 4,500 Taxation (1,500) Profit alter tax 3,000 Proposed dividends 12.000 Retained profit 1.000 Further information is available: Vehicles Fixtures Rs. Rs. Depreciation for year 1.000 2.500 Disposals: Proceeds on disposal 1,700 Written down value (1,000) Profit on disposal 700 Prepare a Cash Flow Statement for the year ended 31st March, 2006