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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.ParticularsAmount 1.Gain on sale  of fixed tangible  assets12,50,0002.Googwill written off7,80,0003.Tranfer to General Reserve8,75,0004.Provision for taxation4.37,500Additional information: -Particulars31.03.2020 (in ₹)31.03.2019 (in ₹)Prepaid Expenses7,50,0005,00,000Inventory10,50,0008,20,000Trade payables4,50,0003,50,000Trade Receivables6,20,0005,90,0001. 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

Answer»

1. (d) 44,37,500 

2. (c) 39,67,500 

3. (a) 35,57,500 

4. (b) 31,20,000



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