Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

What will be the cash from operating activities in the company's cash flow statement, if the net profits earned during the year are ₹50,000 and the amount of debtors at the beginning and the end of the year is ₹10,000 and ₹20,000 respectively?

Options:

₹40000

₹60000

₹50000

₹30000

Correct Answer:

₹40000

Explanation:

Net profit = 50000
- Increase in debtors (20000-10000) = 10000
 Operating profit = ₹40000