Net Profit during the year ₹1,00,000, Debtors at the beginning of the year is ₹30,000, Debtors at the end of the year is ₹36,000. What is the amount of cash from operating activities?

₹94,000

The correct answer is option 1- ₹94,000

Increase in debtors have resulted in reduction of cash from operating activity.

Increase in debtors = 36,000 - 30,000
                             = 6,000

Cash flow from operating activity  = Net profit - Increase in debtors
                                                 = 1,00,000 - 6,000
                                                 = 94,000