Skip to main contentSkip to solution

If the net profit earned during the year is Rs.50,000 and amount of Depreciation during the year is Rs.15,000, then the cash flow from operating activities will be equal to Rs. _______.

Solution

✅ Correct Option: 1

Depreciation is a non-cash expense which is added back to net profit while computing cash flow from operating activities (indirect method). Cash flow from operating activities = Net Profit + Depreciation = 50,000 + 15,000 = Rs.65,000.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question