4 Views

Question : Sun pharma Ltd., reported Net Profit after Tax of Rs. 6,10,000 for the year ended 31 st March, 2020. The relevant extract from Balance Sheet as at 31 st March, 2020 is:

Particulars 31st march, 2020(Rs) 31st march, 2019(Rs)
Inventories 1,15,000 1,25,000
Prepaid Expenses 20,000 6,000
Trade Payables 1,10,000 80,000
Provision for Tax 20,000 15,000

Depreciation charged on Plant and Machinery Rs. 55,000, tax provided during the year Rs 15,000 and insurance claim received Rs. 50,000, gain (profit) on sale of investment Rs. 20,000 appeared in the Statement of Profit and Loss for the year ended 31st March, 2020.

Cash Flow from Operating Activities are ____________.

Option 1: Rs 6,36,000

Option 2: Rs 6,66,000

Option 3: Rs 6,96,000

Option 4: Rs 6,86,000


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: Rs 6,86,000


Solution : Answer = Rs 6,86,000

Provision for tax a/c
To Cash(paid) 1,000 By Bal b/d 15,000
To bal c/d 20,000 By tax provided 15,000
30,000 30,000

N.P After charging Tax and Extraordinary items 6,10,000
(+) Tax charged 15,000
(-) Insurance claim received (50,000)
NP Before tax and Extraordinary items 5,75,000

Cash flow from operating activities
NP before tax 5,75,000
(+) Dep 55,000
(-) Profit on sale of fixed asset (20,000)
op. Profit Before the Change in Working Capital 6,10,000
(+)Decrease in CA/ Increase in CL
Inventories=10,000
Tax payable=30,000 40,000
(-)Increase in CA/ Decrease in CL(Prepaid expenses) (14,000)
(+)Insurance claim received 50,000
Operating profit before a change in working capital 6,86,000

Hence, the correct option is 4.

Related Questions

Question : Sun pharma Ltd., reported Net Profit after Tax of Rs. 6,10,000 for the year ended 31 st March, 2020. The relevant extract from Balance Sheet as at 31 st March, 2020 is:

1 Views
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
BML Munjal University MBA Adm...
Apply
#83 NIRF Ranking 2022 | Highest CTC - 14.71 LPA | 10% Tution Fee Waiver | Scholarships upto 100% | Application Deadline: 29th Nov’24
XAT- Xavier Aptitude Test 2025
Apply
75+ years of legacy | #1 Entrance Exam | Score accepted by 250+ BSchools | Last date: 30th Nov'24 | Apply now
IFMR Graduate School of Busin...
Apply
UGC Approved Programs | 100% Placement Record | Up to 100% Scholarships | Highest CTC 21.74 LPA
Parul University BBA Admissio...
Apply
India's youngest NAAC A++ accredited University | NIRF rank band 151-200 | 2200 Recruiters | 45.98 Lakhs Highest Package
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books