dividends from investments amounting to rs 1 000 are expected to be received in june 622107

Your Board of Directors has the following proposals for the next financial year:

1. Capital-expenditure proposals Rs. 28 lakhs.
2. Borrowings Rs. 25 lakhs.
3. Investments worth Rs. 4.50 lakhs to be sold for Rs. 7.20 lakhs.

(b) Credit terms are as follows:

Sales/debtors – 10% sales are on cash, 50% of the credit sales are collected next month and the balance in the following months:

(c) Cash and bank balance on 1 April 2010 is expected to be 6000.

(d) Other relevant information are as follows:

1. Plant and machinery will be installed in February 2010 at a cost of Rs. 96,000. The monthly instalment of Rs. 2000 is payable from April onward.
2. Dividend@ 5% on the preference-share capital of Rs. 2,00,000 will be paid on 1 June.
3. Advance to be received for sale of vehicles@ Rs. 9,000 in June.
4. Dividends from investments amounting to Rs. 1,000 are expected to be received in June.
5. Income tax (advance) to be paid in June is Rs. 2,000.