[amp_mcq option1=”Rs. 25,000″ option2=”Rs. 30,000″ option3=”Rs. 32,000″ option4=”Rs. 36,500″ correct=”option3″]<\/p>\n
The correct answer is: C. Rs. 32,000<\/strong><\/p>\n Funds from operations (FFO) is a measure of a company’s cash flow from its operating activities. It is calculated by adding net income to depreciation and amortization, and then subtracting any gains or losses from the sale of assets.<\/p>\n In this case, net income is -Rs. 20,000, depreciation on machinery is Rs. 50,000, amortization of goodwill is Rs. 5,000, loss on the sale of old furniture is Rs. 3,500, and profit on the sale of land is Rs. 8,500. Therefore, funds from operations are calculated as follows:<\/p>\n FFO = -Rs. 20,000 + Rs. 50,000 + Rs. 5,000 – Rs. 3,500 + Rs. 8,500 = Rs. 32,000<\/p>\n The other options are incorrect because they do not take into account all of the relevant information. Option A, Rs. 25,000, does not include the depreciation on machinery. Option B, Rs. 30,000, does not include the amortization of goodwill. Option D, Rs. 36,500, includes the gain on the sale of land, which is not a cash flow from operations.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Rs. 25,000″ option2=”Rs. 30,000″ option3=”Rs. 32,000″ option4=”Rs. 36,500″ correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-54455","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n