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From the Following Information, Calculate Operating Profit before Working Capital Changes: - Accountancy

Numerical

From the following information, calculate Operating Profit before Working Capital Changes:

 
Net Profit before Tax and Extraordinary Items 4,47,000
Depreciation on Machinery 84,000
Interest on Borrowings 16,800
Goodwill Amortised 18,600
Loss on Sale of Furniture 18,000
Premium on Redemption of Preference Shares 6,000
Gain (Profit) on Sale of Investments 12,000
Interest and Dividend Received on Investments 27,600
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Solution

 

Cash Flow Statement 

for the year ended March 31, ….

 

Particulars

Amount

(₹)

Amount

(₹)

A

Cash Flow from Operating Activities

 

 

 

Net Profit Before Taxation and Extraordinary Items

 

4,47,000

 

Items to be Added:

 

 

 

Depreciation on Machinery

84,000

 

 

Loss on Sale of Furniture

18,000

 

 

Interest on Borrowings

16,800

 

 

Goodwill Amortized

18,600

 

 

 

 

1,37,400

 

Items to be Deducted:

 

 

 

Profit on Sale of Investment

(12,000)

 

 

Interest and Dividend Received on Investment

(27,600)

(39,600)

 

Operating Profit before Working Capital Adjustments

 

5,44,800

 Note: Assuming Premium on Redemption of Preference Shares has been paid out of the Securities Premium Reserve Balance.

Concept: Ascertainment of Cash Flow from Investing and Financing Activities
  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 9 | Page 92
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