XYZ Ltd. is a diversified company operating in the consumer goods sector. For the financial year ending March 31, 2025, the company reported a net…

CA Intermediate · Advanced Accounting · PYQS · January 2026
XYZ Ltd. is a diversified company operating in the consumer goods sector. For the financial year ending March 31, 2025, the company reported a net profit before tax of 22,00,000. The depreciation expense for the year was - 4,00,000, and amortization of intangible assets amounted to 1,50,000. During the year, accounts receivable increased by - 3,70,000, inventory rise by - 1,60,000 and accounts payable increased by - 1,85,000. The company also paid - 1,35,000 in interest and - 2,40,000 in income taxes. The company issued new equity shares worth - 9,00,000 and raised a long-term loan of 5,00,000. It repaid - 3,50,000 of existing debt and paid - 90,000 in dividends to shareholders. The opening balance of cash and cash equivalents was - 2,50,000. XYZ Ltd. uses the indirect method to prepare its cash flow statement. The management is keen to understand the impact of these transactions on the company's liquidity and overall cash position. Based on the information given in above Case Scenario, answer the following Question No. 11 to 14:
(A) ₹ 4,00,000
(B) ₹ 1,50,000
(C) ₹ 5,50,000
(D) ₹ 22,00,000

Suggested Answer and Working Notes:

Correct Answer: Option (C)

₹ 5,50,000

Topics: AS 10, AS 3, AS 26

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