Question

If the net profits made during the year are Rs. 50,000 and the bills receivable have decreased by Rs. 10,000 during the year, then the cash flow from operating activities will be equal to Rs. ______.

Options

• Rs. 40,000

• Rs. 60,000

Answer 1

If the net profits made during the year are Rs. 50,000 and the bills receivable have decreased by Rs. 10,000 during the year, then the cash flow from operating activities will be equal to Rs. Rs. 60,000.

Explanation:

Cash from Operating Activities = Net Profit + Decrease in Bills Receivable

= Rs. 50,000 + Rs. 10.000

= Rs. 60.000