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the balance sheet of x limited as on 31 march 2007 is as follows 619084

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:

  1. The stock turnover ratio based on Cost of Goods Sold would be 6 times.
  2. The cost of Fixed Assets to sales ratio would be 1:4.
  3. Fixed Assets costing Rs. 30,00,000 to be installed on 1 April 2007, payment would be made on 31 March 2008.
  4. In March 2008, a dividend of 7% on equity capital would be paid.
  5. Rs. 5,50,000 and 11% debentures would be issued on 1 April 2007.
  6. Rs. 30,00,000 as equity shares would be issued on 31 March 2008.
  7. Creditors would be 25% of materials consumed.
  8. Debtors would be 10% of sales.
  9. The Cost of Goods Sold would be 90% of sales and includes material of 40% and a depreciation of 5% of sales.
  10. The profit is subject to debenture interest and taxation @ 30%.

Required:

  1. Prepare the projected Balance Sheet as on 31 March 2008.
  2. Prepare the projected Cash Flow Statement in accordance with AS-3.

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