Operating profit before working capital changes amounted to ₹85,000. The following further information is given:Particulars31.3.2020 (₹)31.3.2019 (₹)Cash36,00030,000Trade receivable18,00012,000Provision for tax9,0008,000Trade payables20,00016,000Bank overdraft18,000-The Net cash flow from operating activities after tax is:

Let's find the adjustment values for current assets and current liabilities (excluding cash and bank overdraft elements which are part of cash equivalents or financing):Trade Receivables (Current Asset): Increased from ₹12,000 to ₹18,000 (Increase of ₹6,000). This indicates an outflow of cash $\to$ Deduct ₹6,000.Trade Payables (Current Liability): Increased from ₹16,000 to ₹20,000 (Increase of ₹4,000). This indicates an inflow/source of cash $\to$ Add ₹4,000.
\begin{aligned}\text{Operating Profit before Working Capital Changes} &= ₹85,000 \(+) \text{Increase in Trade Payables} &= +₹4,000 \(-) \text{Increase in Trade Receivables} &= -₹6,000 \\hline\text{Cash Generated from Operations before Tax} &= ₹83,000\end{aligned}
Now, deduct the income tax paid. In the absence of other details, the opening balance of Provision for Tax (₹8,000) is assumed to be paid during the year:
$$\text{Net Cash Flow from Operating Activities}=83,000-8,000=₹75,000$$
(Note: Cash and Bank Overdraft are not evaluated within normal operating working capital changes as Cash belongs to Cash Equivalents and Bank Overdraft is treated under Financing Activities.)