Practicing Success
What will be the cash flow from operating activities if the company's net profit is ₹80,000 after writing off goodwill ₹10,000? |
₹60,000 ₹70,000 ₹90,000 ₹85,000 |
₹90,000 |
The correct answer is option 3- ₹90,000. Writing off goodwill does not make any cash outflow so it is added back to net profit. So, after adding back cash flow from operating activities is (80,000 + 10,000) ₹90000. |