The situation
A fictional Pune manufacturer opens with ₹20 lakh cash and ₹20 lakh equity. It buys machinery for ₹8 lakh cash, buys ₹5 lakh inventory on supplier credit and sells all of that stock for ₹9 lakh on customer credit. It collects ₹6 lakh, pays suppliers ₹3 lakh, and records ₹1 lakh depreciation. Ignore tax and other entries.
1. Work out the numbers
What is operating profit before tax and interest?
2. Make the decision
Which closing balances reconcile all three statements?
Complete the calculation above to unlock this decision.