Question

Consider the following income statement :
Which of the following is a correct funds from operations?

• A. Rs. $73,000$
• B. Rs. $75,000$
• C. Rs. $83,000$
• D. Rs. $92,000$

Answer 1

The correct option is A Rs. $73,000$

Profit of the year $55,000$ Rs. $55,000$
Add: Depreciation $=10,000$
Loss on Sale of Machinery $=3,000$
Provision for Taxation $=10,000$ Rs. $23,000$
______________
$78,000$
Less : Non-trading income :
Profit on Sale of investment $5000$
________________
Funds from operations $73,000$
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