Question

1) Given Net profit for the year Rs 2,50,000
transferred to general reserves Rs 40,000 and old
machinery bought for Rs 50,000 was sold for Rs
20,000. Calculate funds from operations.​

Answer 1

Funds from operations = 2,80,000

Step by step Explanation:

• Funds from operations = Net income + intrest expense + Depreciation + Loss on the sale of companie's assets - intrest income - gain on the sale of companie's assets.

We have given here,

• Net income = 2,50,000
• buying price of asset = 50,000
• selling price of asset = 20,000

loss on the sale of an asset = buying price - selling price

$50000 - 20000 = 30000$

Funds from operations = Net income + loss on the sale of an asset

$250000 + 30000 = 280000$

Answer 2

Answer:

ExplanationAns is @ 2,80,000