What will be the cash flow from operating activities if the company's net profit is ₹80,000 after writing off goodwill ₹10,000?
Answer & explanation
Correct answer: option 3
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.