Which of the following will be added to operating profit before working capital changes, while preparing the Cash Flow statement from the indirect method?

Increase in Trade Receivable by ₹80,000 Decrease in Inventory by ₹50,000 Increase in Prepaid Expenses by ₹30,000 Decrease in Trade Payable by ₹20,000

Decrease in Inventory by ₹50,000

An increase in current assets and a decrease in current liabilities are to be deducted while an increase in current liabilities and a decrease in current assets are to be added to the operating profit before working capital changes while preparing the Cash Flow statement from the indirect method. Thus decrease in inventory by ₹50000 is a current asset that is added up.