CUET Preparation Today
| Which calculating cash flow from operating activities which is added net profit? |
Increase in Stock Decrease in Stock Increase in Debtors Decrease in Creditors |
| Decrease in Stock |
| Changes in current assets and liabilities during the period: Increase in current assets and decrease in current liabilities are to be deducted while increase in current liabilities and decrease in current assets are to be added up from net profit to calculate cash flow from operating activity. Thus, an increase in stock, an increase in debtors, and a decrease in creditors are to be deducted. |
