Read the following hypothetical text and answer the given questions on the basis of the same:
Krishika an alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000.
This profit was arrived after taking into consideration the following items:-
| S. No. |
Particulars |
Amount |
| 1. |
Gain on sale of fixed tangible assets |
12,50,000 |
| 2. |
Googwill written off |
7,80,000 |
| 3. |
Tranfer to General Reserve |
8,75,000 |
| 4. |
Provision for taxation |
4.37,500 |
Additional information: -
| Particulars |
31.03.2020 (in ₹) |
31.03.2019 (in ₹) |
| Prepaid Expenses |
7,50,000 |
5,00,000 |
| Inventory |
10,50,000 |
8,20,000 |
| Trade payables |
4,50,000 |
3,50,000 |
| Trade Receivables |
6,20,000 |
5,90,000 |
1. Net Profit before tax will be ₹………. (Choose the correct alternative)
(a)22,50,000
(b) 35,62,500
(c) 39,67,500
(d) 44,37,500
2. Operating profit before working capital changes will be ₹………… (Choose the correct alternative)
(a) 52,17,500
(b) 64,67,500
(c) 39,67,500
(d) 39,69,500
3. Cash from operating activities before tax will be ₹……… (Choose the correct alternative)
(a) 35,57,500
(b) 40,67,500
(c) 37,87,500
(d) 35,67,300
4. Cash flow from Operating Activities will be ₹………… (Choose the correct alternative)
(a) 39,95,000
(b) 31,20,000
(c) 40,67,500
(d) 31,00,000
