The company arrived at a net income of ₹5,00,000 at the year-end. Depreciation for the year was ₹2,00,000. There was a profit of ₹50,000 on assets sold which was transferred to the Statement of Profit and Loss account. Trade Receivables increased during the year is ₹40,000 and Trade Payables also increased by ₹60,000. Compute the cash flow from operating activities.

₹6,70,000

The correct answer is option 4- ₹6,70,000.

Thus, Cash flow from operating activity is ₹670000.