The Balance Sheet of X Limited as on 31 March 2007 is as follows:
|
Liabilities |
Rs. In “000 |
Assets |
Rs. In “000 |
|
Equity Share Capital |
6,000 |
Fixed Assets (at cost) |
16,250 |
|
8%Preference Share Capital |
3,250 |
Less: Depreciation written off |
5,200 |
|
Reserves & Surplus |
1,400 |
11,050 |
|
|
10% Debentures |
1,950 |
Stock |
1,950 |
|
Sundry creditors |
3,250 |
Sundry Debtors |
2,600 |
|
Cash |
250 |
||
|
15,850 |
15,850 |
The following additional information is available:
- The stock turnover ratio based on Cost of Goods Sold would be 6 times.
- The cost of Fixed Assets to sales ratio would be 1:4.
- Fixed Assets costing Rs. 30,00,000 to be installed on 1 April 2007, payment would be made on 31 March 2008.
- In March 2008, a dividend of 7% on equity capital would be paid.
- Rs. 5,50,000 and 11% debentures would be issued on 1 April 2007.
- Rs. 30,00,000 as equity shares would be issued on 31 March 2008.
- Creditors would be 25% of materials consumed.
- Debtors would be 10% of sales.
- The Cost of Goods Sold would be 90% of sales and includes material of 40% and a depreciation of 5% of sales.
- The profit is subject to debenture interest and taxation @ 30%.
Required:
- Prepare the projected Balance Sheet as on 31 March 2008.
- Prepare the projected Cash Flow Statement in accordance with AS-3.