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?

₹40,000

The correct answer is option 1- ₹40,000.

Net profit = 50,000
Less: Increase in debtors (20,000-10,000) = 10000
                                                                     = 50,000 - 10,000
                                                                     = ₹40,000

Thus, cash from operating activities in the company's cash flow statement is ₹40,000.