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
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Cash Flow Statement for the year ended March 31, …. |
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Particulars |
Amount (₹) |
Amount (₹) |
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A |
Cash Flow from Operating Activities |
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Net Profit Before Taxation and Extraordinary Items |
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4,47,000 |
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Items to be Added: |
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Depreciation on Machinery |
84,000 |
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Loss on Sale of Furniture |
18,000 |
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Interest on Borrowings |
16,800 |
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Goodwill Amortized |
18,600 |
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1,37,400 |
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Items to be Deducted: |
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Profit on Sale of Investment |
(12,000) |
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Interest and Dividend Received on Investment |
(27,600) |
(39,600) |
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Operating Profit before Working Capital Adjustments |
|
5,44,800 |
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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
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