Following is the extract from the Balance Sheet of Karishma Ltd. as at 31st March, 2023:
Solution
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For each of the following transactions, Calculate the resulting cash flow and state the nature of cash flow, i.e., whether it is Operating, Investing or Financing Activity:
Solution:- a) ₹ 2,50,000 ✕ 20% = ₹ 50,000 Investing Activity Outflow b) ₹ 2,50,000 – ₹ 50,000 = ₹ 2,00,00 Investing Activity Outflow c) ₹ 60,000 Investing Activity Inflow
State which of the following would result in inflow or outflow or no flow of Cash and Cash Equivalents:
Solution:- a) Inflow b) Inflow c) Outflow d) No Flow e) No Flow f) No Flow
Classify the following transactions as Operating Activities for a finance company and a non-finance company:
Solution:- a) Purchase of shares on a Stock Exchange:- Operating activity for a finance company b) Dividend received on shares:- Operating activity for a finance company d) Loans given:- Operating activity for finance company e) Loans taken:- Operating activity for…
Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:
Solution:- Solution:- a) Cash Sale of Goods:- It is the Operating Activity as it is the principal revenue activity of the business. b) Cash Received against Revenue from Services Rendered:- It is the operating activity as it is the principal…
From the following information, Calculate: (i) Gross Profit Ratio; (ii) Working Capital Turnover Ratio; and (iii) Proprietary Ratio.
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From the following information related to Naveen Ltd., Calculate (a) Return on Investment and (b) Total Assets to Debt Ratio
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From the following, Calculate (a) Debt to Equity Ratio; (b) Total Assets to Debt Ratio; and (c) Proprietary Ratio:
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On the basis of the following information, calcualte: (i) Debt to Equity Ratio; and (ii) Working Capital Turnover Ratio.
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From the information given below, calculate any three of the following ratios: (i) Gross Profit Ratio; (ii) Working Capital Turnover Ratio
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