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Question

Accountancy Question on Income and Expenditure Account

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

A

₹ 60,000

B

₹ 1,00,000

C

₹ 80,000

D

₹ 1,20,000

Answer

₹ 80,000

Explanation

Solution

The correct option is (C): ₹ 80,000