EFR The balance sheet of Deepak Cables Limited on December 31, 20X0 is shown below: -...

 

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EFR The balance sheet of Deepak Cables Limited on December 31, 20X0 is shown below: - Equity share capital 150 Property, plant, and equipment 400 180 Inventories 200 Other equity Term loans 80 Trade receivables 200 Cash 50 140 Short-term bank borrowings Trade payables Provisions 50 800 800 The sales of the firm for the year ending on December 31, 20X0 were 1,000. Its profit margin on sales was 6 percent and its dividend payout ratio was 50 percent. The tax rate was 60 percent. Deepak Cables expects its sales to increase by 30 percent in the year 20X1. The ratio of assets to sales and spontaneous current liabilities to sales would remain unchanged. Likewise the profit margin ratio, the tax rate, and the dividend payout ratio would remain unchanged. Required: 1. Estimate the external funds requirement for the year 20X1. 2. Prepare the following statements, assuming that the external funds requirement would be raised equally from term loans and short-term bank borrowings: (i) projected balance sheet and (ii) projected statement of profit and loss. aast arber 20X0 is shown below: 150 EFR The balance sheet of Deepak Cables Limited on December 31, 20X0 is shown below: - Equity share capital 150 Property, plant, and equipment 400 180 Inventories 200 Other equity Term loans 80 Trade receivables 200 Cash 50 140 Short-term bank borrowings Trade payables Provisions 50 800 800 The sales of the firm for the year ending on December 31, 20X0 were 1,000. Its profit margin on sales was 6 percent and its dividend payout ratio was 50 percent. The tax rate was 60 percent. Deepak Cables expects its sales to increase by 30 percent in the year 20X1. The ratio of assets to sales and spontaneous current liabilities to sales would remain unchanged. Likewise the profit margin ratio, the tax rate, and the dividend payout ratio would remain unchanged. Required: 1. Estimate the external funds requirement for the year 20X1. 2. Prepare the following statements, assuming that the external funds requirement would be raised equally from term loans and short-term bank borrowings: (i) projected balance sheet and (ii) projected statement of profit and loss. aast arber 20X0 is shown below: 150

Answer rating: 100% (QA)

Current Year Sales 1000 Sales increases by 30 Thus projected sales 1000 1... View the full answer