Profit during the year Rs 20,000. During the year, there was increase in stock by Rs 9,000 and decrease in debentures of Rs 5,000. What is the amount of cash from operating activities?

₹6000 ₹16000 ₹34000 ₹11,000

₹11,000

An increase in a company's inventory indicates that the company has purchased more goods than it has sold. Since the purchase of additional inventory requires the use of cash, it means there was an additional outflow of cash. An outflow of cash has a negative or unfavorable effect on the company's cash balance. Decrease in debentures in financing activity. Cash from operating activity=20000-9000=11000