Projected Balance Sheet

Balance Sheet of M$/$ S Sagar Ltd as on $31$ st March $2022$ is as under $($Rs Lakhs$)-$ Refer image

$-$During the year $2022-23,$ the firm plans to raise a Secured Loan of Rs $10$ Lakhs,

repay present secured Term Loan to the extent of Rs $5$ Lakhs, acquire fixed

assets of Rs $15$ Lakhs and raise inventories by Rs $5$ Lakhs $.$ During the year, the

Current Liabilities and Receivables are expected to rise by $5\%$ each.

You are required to prepare the Cash Flow Statement for $2021-22$ and the

Projected Balance Sheet as on $31$ st March $2022..$

Hint : Prepare Cash Flow by working our the Inflow and out flow of funds :

Inflow of Funds PBIT $+$ Depreciation $+$Increase in Secured Loans $+$ Increase in

Current Liabilities $(-)$ Disposal of funds ie Interest Paid $+$ Tax Paid $+$ Term Loan

repaid $+$ funds used for increase in $($inventories $+$ Receivables$)+$ Funds used

for acquiring new fixed assets $+$ Net Surplus left

From the net surplus fund $$ Dividend paid $+$ retained earnings

Projected Balance Sheet as on $31,03\mathrm{.}23$ can be drawn by adding or subtracting

changes in Assets and Liabilities during the year $2021-22$ in existing Reserves

and Surplus $(+5),$ Existing Secured Loans $(+10-5),$ Existing CL $(+5\%)$

Receivables $($ Existing $+5\%),$ Inventories $(($existing $+5$L$),$ Cash $($ Existing $+$

internal Surplus generated $$ Dividend paid$),,$ Investments $-$No Change $,,$

Fixed Assets $($ Existing $+$ New Assets acquired$-$ Depreciation Charged on FA$)$

Using the new worked out Liabilities and Assets, the Projected BS will be drawn

$($Check $-$Total Liabilities $=$ Total Assets $=243)$