B Com Exam > B Com Questions > Calculate funds from operations from the foll...
Start Learning for Free
Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000?
Most Upvoted Answer
Calculate funds from operations from the following profit and loss acc...
Calculation of Funds from Operations
Gross Profit = Revenue - Cost of Goods Sold
Gross Profit = 4,50,000 (Given)
Cost of Goods Sold = Revenue - Gross Profit
Cost of Goods Sold = 5,10,000 - 4,50,000
Cost of Goods Sold = 60,000
Operating Expenses = Expenses paid - Depreciation - Loss on sale of Machine - Discount - Goodwill
Operating Expenses = 3,00,000 - 70,000 - 4,000 - 200 - 20,000
Operating Expenses = 2,05,800
Net Profit = Gross Profit - Operating Expenses +/- Other Income/Expenses
1,15,800 = 4,50,000 - 2,05,800 +/- Other Income/Expenses
Other Income/Expenses = 1,15,800 - 4,50,000 + 2,05,800
Other Income/Expenses = -1,28,400
Funds from Operations = Net Profit + Depreciation +/- Other Non-Cash Expenses
Funds from Operations = 1,15,800 + 70,000 + 1,28,400 (Depreciation is a non-cash expense)
Funds from Operations = 3,14,200
Explanation
Funds from Operations is a measure of a company's cash flow from its operating activities. It is calculated by adding back non-cash expenses like depreciation to net profit and subtracting any other non-cash income or expenses.
In this case, we have calculated the Funds from Operations by first calculating the Gross Profit and Cost of Goods Sold. Then we have calculated the Operating Expenses by subtracting Depreciation, Loss on sale of Machine, Discount, and Goodwill from the Expenses paid.
After that, we have calculated the Other Income/Expenses by subtracting Operating Expenses from Gross Profit and then adding or subtracting any other non-cash income or expenses. In this case, there is a negative Other Income/Expense of -1,28,400.
Finally, we have calculated the Funds from Operations by adding back Depreciation to Net Profit and adding or subtracting any other non-cash expenses. The Funds from Operations for this company is 3,14,200.
Gross Profit = Revenue - Cost of Goods Sold
Gross Profit = 4,50,000 (Given)
Cost of Goods Sold = Revenue - Gross Profit
Cost of Goods Sold = 5,10,000 - 4,50,000
Cost of Goods Sold = 60,000
Operating Expenses = Expenses paid - Depreciation - Loss on sale of Machine - Discount - Goodwill
Operating Expenses = 3,00,000 - 70,000 - 4,000 - 200 - 20,000
Operating Expenses = 2,05,800
Net Profit = Gross Profit - Operating Expenses +/- Other Income/Expenses
1,15,800 = 4,50,000 - 2,05,800 +/- Other Income/Expenses
Other Income/Expenses = 1,15,800 - 4,50,000 + 2,05,800
Other Income/Expenses = -1,28,400
Funds from Operations = Net Profit + Depreciation +/- Other Non-Cash Expenses
Funds from Operations = 1,15,800 + 70,000 + 1,28,400 (Depreciation is a non-cash expense)
Funds from Operations = 3,14,200
Explanation
Funds from Operations is a measure of a company's cash flow from its operating activities. It is calculated by adding back non-cash expenses like depreciation to net profit and subtracting any other non-cash income or expenses.
In this case, we have calculated the Funds from Operations by first calculating the Gross Profit and Cost of Goods Sold. Then we have calculated the Operating Expenses by subtracting Depreciation, Loss on sale of Machine, Discount, and Goodwill from the Expenses paid.
After that, we have calculated the Other Income/Expenses by subtracting Operating Expenses from Gross Profit and then adding or subtracting any other non-cash income or expenses. In this case, there is a negative Other Income/Expense of -1,28,400.
Finally, we have calculated the Funds from Operations by adding back Depreciation to Net Profit and adding or subtracting any other non-cash expenses. The Funds from Operations for this company is 3,14,200.
Community Answer
Calculate funds from operations from the following profit and loss acc...
Answer is D
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000?
Question Description
Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000?.
Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000?.
Solutions for Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? defined & explained in the simplest way possible. Besides giving the explanation of
Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000?, a detailed solution for Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? has been provided alongside types of Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? theory, EduRev gives you an
ample number of questions to practice Calculate funds from operations from the following profit and loss account. Particulars Particulars To Expenses paid 3,00,000 By Gross Profit 4,50,000 To Depreciation 70,000 By Gain on sale of land 60,000 To loss on sale of Machine 4,000 To Discount 200 To Goodwill 20,000 To Net profit 1,15,800 5,10,000 5,10,000? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup