Question

The financial statements of ABC Enterprises provide the following position of Current Assets (C

  • A and Current Liabilities (C
  • L : • As on 31-03-2025: Current Assets = ₹4,00,000; Current Liabilities = ₹1,80,000 • As on 31-03-2026: Current Assets = ₹5,50,000; Current Liabilities = ₹2,50,000 What is the net change in Working Capital, and how is it reflected in the Fund Flow Statement?
A Increase in Working Capital of ₹80,000 (Application of Funds)
B Decrease in Working Capital of ₹80,000 (Source of Funds)
C Increase in Working Capital of ₹1,50,000 (Application of Funds)
D Increase in Working Capital of ₹70,000 (Application of Funds)
E Decrease in Working Capital of ₹70,000 (Source of Funds)
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