You are required to complete the answer sheet based on the facts provided in the case Infosystem Inc.

Infosystem Inc.

Infosystem was set up by a group of alums of ABC in 1^st April 2016 with an investment of`10 million to sale and service computer printers. The investment comprised of` 60 lakhs equity capital with face value of`10 each and 10%,` 40 lakhs convertible bonds with a face value of` 100 each. The bonds were issued to few financial institutions at 4% discount and were tradable in the stock market. The coupon would be paid annually and duration of the bonds was 10 years. In case the investors present an option to convert their bonds into equity capital, then each bond would be converted into ten equity shares after completion of 5 years.

The company acquired various machineries for` 60 lakhs and furniture for`20 lakhs. The balance of money was to fund the working capital. Furniture had an estimated life of 15 years with an expected scrap of` 0.5 lakhs. Machines had an estimated life of 10 years with an expected scrap of`4 lakhs. The annual report of the company reveals the following accounting policies adapted by the firm:

1. FIFO cost for inventory valuation,
2. WDV method for depreciation on fixed assets
3. Cost method for PPE accounting
4. 5% provision for doubtful debts.
5. 15 days credit from its suppliers and allows the same credit period to its customers
6. Purchases and sales occur evenly throughout the year.

The Revenues:

During the year 2019-20, the company's sales revenue was` 420 lakhs and service revenue was`100 lakhs. The selling price per printer was` 6000, which was unchanged from the previous year 2018-19. This has enabled the company to sale 700 more printers during 2019-20 as compared to its previous year. One of the customers who owed` 60000 to Infosystem became insolvent and requested the company to write off the debt.

The Expenses:

The operating expense during the year was` 120 lakhs exclusive of depreciation. Procurements of printers, made at different prices during the year 2019-20, are presented below in chronological order:

Unit	Price (`)
2000	3500
3000	3300
3000	3200

Additional Information:

The opening inventory of 2019-20 included 1000 printers in inventory bought at`3400 each

The retained earnings at the beginning of 2019-20 was` 23,00,000

Keeping`35,00,000 as closing cash balance for working capital remaining amount has been invested in shares of different IT companies.

The fair value of machinery and furniture on March 31, 2020, were estimated to be` 18,00,000 and` 8,00,000 respectively.

As a practice 50% of the profit was distributed as dividend every year.

Assuming the transactions of the two companies were exactly same during last two years, prevailing tax rate 30% and 360 working days in a year, you are required to

1. Prepare the income statement for the year 2019-20
2. Compute the Basic and Diluted earnings per share
3. Complete the Balance Sheet of Infosystem as on March 31, 2020
4. Make a Du-Pont analysis to evaluate the performance of the firm