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Q3B: in lakhs The balance sheet of Beach Wood Steel Limited at the end of year n (the year which is just over) is as
Q3B: in lakhs The balance sheet of Beach Wood Steel Limited at the end of year n (the year which is just over) is as follows: (All figures are Liabilities Assets 120 30 Share Capital Reserves & Surplus Secured Loans Unsecured Loans Current Liabilities Provisions 120 20 30 10 10 : 10 50 Fixed Assets Investments Current Assets Cash Receivables Inventories 20 10 20 200 200 The projected income statement and the distribution of earnings is given below: Sales 120 Cost of Goods sold 70 Depreciation 20 Profit before interest and tax 30 Interest Profit before tax 20 Tax Profit after tax 15 Dividend 5 Retained Earnings 10 *** During the year n+1, the firm plans to raise a secured loan of Rs 20 lakhs and repayment of loans by 5 lakhs. The investment is planned to increase by 10 lakhs. There is an increase in current liabilities due to deferred payment to machinery suppfers by 5 lakhs and provisions also increased by 5 lakhs. The company plans to sell fixed assets worth Rs 10 lakhs and raise its inventories by 10 lakhs Receivables are expected to increase by 5 lakhs. The firm plans to pay 5 lakhs by way of equity dividend. The level of cash would be the balancing amount in the projected balance sheet Given the above information nrenare the following (a) Projected Cash Flow statement (b) Projected Balance Sheet
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