Pooja posted an Question
November 04, 2021 • 02:29 am 30 points
  • UGC NET
  • Commerce

Abc ltd. has profit after tax rs. 80,000, depreciation rs. 15,000 and decrease in debtors rs. 25,000. what is the cash flow from operating activities?

ABC Ltd. has profit after tax Rs. 80,000, Depreciation Rs. 15,000 and decrease in debtors Rs. 25,000. What is the cash flow from operating activities?

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  • Sapare bhavani bai best-answer

    Cash flow from operating activities is 120000 since depreciation is non cash flow activity it should be added back and decrease in debtors result in cash inflow to the firm it should be added back

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