Practicing Success
If the profits made during the year are ₹50,000 and the bills receivables have decreased by ₹10,000 during the year then the cash flow from operating activities will be : |
₹50,000 ₹40,000 ₹60,000 ₹70,000 |
₹60,000 |
The correct answer is option 3- ₹60,000. Profit = 50,000 Decrease in current assets are added to calculate the cash flow from operating activity. So, cash flow from operating activity = 50,000 + 10,000 |