What can go wrong if you have a balance sheet with a lot of
debt? What can go wrong if there is negative owner's
equity? What does a good cash flow statement look like and
why?
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Your grandfather is 75 years old. He has total saving of Rs. 80000. He expects that he live for another 10 years and will like to spend his saving by them. He placed his saving into a bank account earning 10 per cent annually. He will draw equal amount each year- the first withdrawal occuring one year from now in such a way that his account balance becomes zero at the end of 10 years. How much will be his annual withdrawal?
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