Operating Profit before working capital changes = Net Profit + Non-cash/Non-operating items.
= 1,50,000 + 30,000 (Depreciation) + 30,000 (Transfer to General Reserve) + 9,000 (Goodwill Amortised) - 5,000 (Gain on sale of machinery)
= 2,14,000.
Cave Ltd. made a profit of Rs. 1,50,000 after charging depreciation of Rs. 30,000 on assets and a transfer to general reserve of Rs. 30,000. The Goodwill amortised was Rs. 9,000 and gain on sale of machinery was Rs. 5,000. Operating profit before working capital changes will be :
Held on 11 Jun 2023 · Verified 13 Jul 2026.
Rs. 1,50,000
Rs. 1,80,000
Rs. 2,14,000
Rs. 2,19,000
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