Question
A company shows an increase in Fixed Assets of ₹30 crore during the year. During the same period, Working Capital decreases by ₹10 crore and a fresh Term Loan of ₹25 crore is raised. The balance amount is funded through internal accruals. What is the minimum internal accrual used for capital expenditure?
Solution
Sources = 25 + 10 = 35. Uses = 30. Excess = 5 → Internal accrual = ₹5 crore.
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