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The balance sheet of Electric Vehicles Limited, Pune at the end of year n (the year which is just over) is as follows: (All figures
The balance sheet of Electric Vehicles Limited, Pune at the end of year n (the year which is just over) is as follows: (All figures are in lakhs) Liabilities Share Capital Reserves & Surplus Secured Loans Unsecured Loans Current Liabilities Provisions : 130 : 10 20 20 10 : 10 Assets Fixed Assets Investments Current Assets: Cash 20 Receivables : 20 Inventories : 30 100 30 70 200 200 The projected income statement and the distribution of earnings is given below: Sales Cost of Goods sold Depreciation Profit before interest and tax : 120 : 70 5 45 The projecte come statement anu te uisunution or earnings is given below. Sales Cost of Goods sold Depreciation Profit before interest and tax Interest Profit before tax 120 : 70 5 45 . 10 : 35 : 10 25 5 : 20 Tax Profit after tax Dividend Retained Earnings During the year n+1, the firm plans to raise a secured loan of Rs. 20 lakhs. The company plans to repay unsecured loans by 5 lakhs. Current Liabilities increased by 5 lakhs and provisions decreased by 5 lacs. The company 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: (a) Projected Cash Flow statement (b) Projected Balance Sheet [4 + 4 = 8]
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