If the net profit earned during the year is Rs. 1,00,000 and the amount of Bills receivables in the beginning and the end of the year is Rs. 20,000 an - Accountancy MCQ CUET Accountancy 2022 30 Aug Shift 2 2026 | ExamTest.live

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If the net profit earned during the year is Rs. 1, 00, 000 and the amount of Bills receivables in the beginning and the end of the year is Rs. 20, 000 and Rs. 40, 000 respectively, then cash flow from operating activities will be:

Solution & Step-by-step Explanation

Bills Receivables increased by Rs. 20, 000 (40, 000 - 20, 000). Increase in current assets is deducted from Net Profit.Cash flow from operations = 1, 00, 000 - 20, 000 = Rs. 80, 000 .

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If the net profit earned during the year is Rs. 1, 00, 000 and the amount of Bills receivables in the beginning and the end of the year is Rs. 20, 000 and Rs. 40, 000 respectively, then cash flow from operating activities will be:

Rs. 60, 000

Rs. 1, 00, 000

Rs. 80, 000

Rs. 1, 20, 000

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