Nee Ltd. had the following figures as on 1 April 2010:
|
Rs. |
|
|
Fixed Assets—Cost |
18,00,000 |
|
Less: Depreciation |
6,30,000 |
|
11,70,000 |
|
|
Bank Balance |
1,05,000 |
|
Current Assets, |
7,50,000 |
|
other than Bank Balance |
|
|
Current Liabilities |
3,00,000 |
|
Capital (Shares of 10 Each) |
12,00,000 |
The company made the following estimates:
- The profit would be Rs.1,74,000 after depreciation of Rs.1,80,000.
- The company will acquire fixed assets costing Rs.3,00,000 after selling one machine for Rs.60,000 costing Rs.1,50,000 and on which depreciation provided will amount to Rs.1,05,000.
- Current assets and current liabilities, other than bank balance, at the end of March 2011 are expected to be Rs.8,85,000 and Rs.3,90,000, respectively.
- The company will pay dividend of 10% and corporate dividend tax thereon of 11%.
At the end of the accounting year, the company sends all the cash in hand to the bank. Prepare a cash flow statement for the year ended on 31 March 2011 and estimate the bank balance or overdraft as on that date.