alleryStart learning →Profit 3,00,000 with 20,000 machine gain; stock fell 35,000, creditors fell 25,000. Operating cash?
ARs 2,90,000
BRs 3,00,000
CRs 2,60,000
DRs 3,40,000
Answer & Solution
Correct answer: A. Rs 2,90,000
300000 - 20000 + 35000 - 25000 = 290000, as the gain is an investing item and a falling stock releases cash.
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