Question

Prayas Ltd. made a profit of ₹ 1,75,000 after considering the following items:

1. Goodwill written off ₹ 6,000
2. Depreciation on furniture ₹ 3,400
3. Loss on sale of building ₹ 89,000
4. Gain on sale of land ₹ 4,250

Operating profit before working capital changes will be?

Options

• ₹ 2,25,149

• ₹ 2,69,150

• ₹ 2,35,160

• ₹ 2,53,145

Answer 1

₹ 2,69,150

Explanation:

Particulars	Amount (₹)
Net profit before tax and extraordinary items	1,75,000
Add: Non-cash and Non-operating expenses
Goodwill written off	6,000
Depreciation	3,400
Loss on sale of building	89,000
Less: Non-operating incomes
Gain on sale of land	(4,250)
Total adjustments	94,150
Net cash flow from operating activities	2,69,150