Practicing Success
Read the following passage and answer the question. A company made a profit of ₹1,00,000 after charging a Depreciation of ₹20,000 and a transfer to a General Reserve of ₹30,000. The goodwill written off of ₹7,000 and the gain on the sale of Machinery was ₹3,000. |
Calculate the net cash flow from operating activities. |
₹1,30,000 ₹1,54,000 ₹1,55,800 ₹1,35,000 |
₹1,55,800 |
The correct answer is option 3- ₹1,55,800. Profit made during the year = 1,00,000
Calculation of cash flow from operating activities
|