What will be the cash flow from operating activities in the cash flow statement of the company, if the net profits made during the year are ₹50,000 and the bills receivables have decreased by ₹10,000 during the year?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹60,000.
Net profit = ₹50,000
ADD: Decrease in current asset = 10,000
Cash flow from Operating activity = 50,000 + 10,000
= ₹60,000