What is the amount of cash from operating activities in the cash flow statement if the Net Profit during the year is ₹30,000 and Creditors in the beginning is ₹24,000 and Creditors at the end is ₹16,000?

₹22,000

The correct answer is option 2- ₹22,000.

Net profit= 30,000
Less: - Decrease in creditors (24,000 - 16,000) = 8,000
Profit from Operating activity = 30,000 - 8,000
                                              = ₹22,000