Jaroa Ltd has the following balances as on 1 April 2008:
|
Fixed Assets |
8,50,000 |
|
|
Less: |
Depreciation |
1,20,000 |
|
7,30,000 |
||
|
Stock & Debtors |
3,25,000 |
|
|
Bank Balance |
65,000 |
|
|
Creditors |
84,000 |
|
|
Bills Payable |
44,000 |
|
|
Capital (Shares of Rs. 100 each) |
4,00,000 |
The company made the following estimates for the financial year 2008–09:
- The company will pay a free-of-tax dividend @ 10%, the rate of tax being 20%.
- The company will acquire Fixed Assets costing Rs. 1,20,000 after selling one machine for Rs. 30,000, costing Rs. 65,000, and on which the depreciation provided amounted to Rs. 12,500.
- Stock and Debtors, Creditors and Bills Payable at the end of the financial year are expected to be Rs. 4,30,000, Rs. 1,08,000 and Rs. 58,000 respectively.
- The Net Profit would be Rs. 87,500 after a depreciation of Rs. 36,000.
Prepare the projected Cash Flow Statement and ascertain the bank balance of R Ltd at the end of the financial year 2008–09.