Q2. is as follows: The balance sheet of Sigma Corporation at the end of year n (the year which is just over) (Rs.in million) Liabilities Share capital 50 Assets Fixed assets 110 Reserves and surplus 20 Investments 6 Secured loans 30 Current assets 26 Unsecured loans 25 Cash 4 Current liabilities 12 Provisions 5 Receivables Inventories 12 10 142 142 The projected (year n+1) income statement and the distribution of earnings is given below: Sales 250 Cost of goods sold 160 Depreciation 20 Profit before interest and taxes 70 10 Interest 60 Profit before tax 18 Tax 42 Profit after tax Dividends Retained earnings 10 32 (Rs.in million)