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?

₹60,000

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