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Sales Cost of goods sold Depreciation Profit before interest and taxes Interest Profit before tax Tax Profit after tax Dividends Retained earnings 250 160 20 70 10 60 18 42 10 32

Sales Cost of goods sold Depreciation Profit before interest and taxes Interest Profit before tax Tax Profit after tax Dividends Retained earnings 250 160 20 70 10 60 18 42 10 32

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance sheet of Sigma Corporation at the end of year n (the year which is just over) Q2. is as follows: Liabilities Share capital Reserves and surplus Secured loans Unsecured loans Current liabilities Provisions Sales Cost of goods sold Depreciation 50 20 30 25 12 5 Profit before interest and taxes Interest Profit before tax Tax Profit after tax Dividends Retained earnings Assets Fixed assets Investments Current assets Cash 142 142 The projected (year n+1) income statement and the distribution of earnings is given below: (Rs.in million) Receivables Inventories 250 160 20 70 10 110 6 26 4 12 10 60 18 42 10 32 (Rs.in million)
Transcribed Image Text:The balance sheet of Sigma Corporation at the end of year n (the year which is just over) Q2. is as follows: Liabilities Share capital Reserves and surplus Secured loans Unsecured loans Current liabilities Provisions Sales Cost of goods sold Depreciation 50 20 30 25 12 5 Profit before interest and taxes Interest Profit before tax Tax Profit after tax Dividends Retained earnings Assets Fixed assets Investments Current assets Cash 142 142 The projected (year n+1) income statement and the distribution of earnings is given below: (Rs.in million) Receivables Inventories 250 160 20 70 10 110 6 26 4 12 10 60 18 42 10 32 (Rs.in million)
During the year n+1, the firm plans to raise a secured term loan of Rs.10 million, repay a previous secured term loan to the extent of Rs. 18 million. Current liabilities and provisions would increase by 10 per cent. Further, the firm plans to acquire fixed assets worth Rs.40 million and raise its inventories by Rs.2 million. Receivables are expected to increase by 8 per cent. The level of cash would be the balancing amount in the projected balance sheet. the following: Given the above information, prepare t (1) Projected cash flow statement () Projected balance sheet
Transcribed Image Text:During the year n+1, the firm plans to raise a secured term loan of Rs.10 million, repay a previous secured term loan to the extent of Rs. 18 million. Current liabilities and provisions would increase by 10 per cent. Further, the firm plans to acquire fixed assets worth Rs.40 million and raise its inventories by Rs.2 million. Receivables are expected to increase by 8 per cent. The level of cash would be the balancing amount in the projected balance sheet. the following: Given the above information, prepare t (1) Projected cash flow statement () Projected balance sheet
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