The directors of Precision Tools Ltd. are worried at the deteriorating financial position of the company. The company has utilised full overdraft facility from the bank and is still not able to pay...

The directors of Precision Tools Ltd. are worried at the deteriorating financial position of the company. The company has utilised full overdraft facility from the bank and is still not able to pay its creditors on due dates, although the profits earned are satisfactory.

The following are the balance sheets as on March 31 for the recent 2 years.

During the year, a dividend of 10 per cent was distributed to the shareholders. On April 1 of the current year, a motor car, which originally costed Rs 20,000, and showed a book value of Rs 10,000, was sold for Rs 16,000.

You are required to prepare a cash flow statement based on AS-3.