Question

From the following information obtained from the books of Informatics India Ltd., calculate ‘Cash from Operations’: Net Profit for the year ended 31st March, 2025 after providing depreciation ₹60,000 and after writing off goodwill ₹2,000 was ₹3,40,000. Additional Information: \begin{center} \begin{tabular}{|l|r|r|} \hline Particulars & 31.3.2024 (₹) & 31.3.2025 (₹)
\hline Rent received in advance & 20,000 & 10,000
Accrued interest & 30,000 & 40,000
Prepaid insurance & 15,000 & 20,000
Outstanding salary & 25,000 & 40,000
Trade receivables & 1,24,000 & 1,25,000
Trade payables & 1,30,000 & 1,50,000
Inventory & 50,000 & 80,000
Other current assets & 1,00,000 & 1,20,000
\hline \end{tabular} \end{center}

Hint:

Cash from Operations Steps: 1. Start with Net Profit. 2. Add non-cash expenses (depreciation, goodwill write-off). 3. Adjust working capital changes: • Increase in current assets → Deduct • Increase in current liabilities → Add

Answer 1