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

Decrease in Inventory by ₹50,000

The correct answer is option 2- 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 ₹50,000 is a current asset that is added up.