If the net profit earned during the year is ₹50,000 and the amount of depreciation charged during the year is ₹15,000, then the cash flow from operating activities (assuming no working capital adjustments) will be equal to ₹ _______.
- A₹65,000
- B₹35,000
- C₹50,000
- D₹15,000
Solution & Step-by-step Explanation
Depreciation is a non-cash expense that was previously deducted to determine net profit. To find the actual cash flow from operations, non-cash charges must be added back to the net profit: