3. The balance sheet of Creative Automotive Design Limited at the end of year n (the year which is just over) is as follows: (All figures are in lakhs)

Liabilities Assets

Share Capital : 100 Fixed Assets : 120

Reserves & Surplus : 30 Investments : Nil

Secured Loans : 50 Current Assets : 150

Unsecured Loans : 20 Cash : 60

Current Liabilities : 60 Receivables : 10

Provisions : 10 Inventories : 80

_____ ____

270 270

The projected income statement and the distribution of earnings is given below:

Sales : 250

Cost of Goods sold : 200

Depreciation : 10

Profit before interest and tax : 40

Interest : 10

Profit before tax : 30

Tax : 10

Profit after tax : 20

Dividend : 5

Retained Earnings : 15

During the year n+1, the firm plans to raise a secured loan Rs.10 lakhs, repay a previous term loan to the extent of 5 lakhs. The company plans to increase unsecured loans by 5 lakhs. Current Liabilities decreased by 10 lakhs and Provisions are expected to remain unchanged. The firm plans to acquire fixed assets worth Rs. 20 lakhs and raise its inventories by 10 lakhs. Receivables are expected to increase by 10 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, prepare the following:

1. Projected Cash Flow statement
2. Projected Balance Sheet