A decrease in debtors means more cash has been collected, so it is added to net operating profit.
Cash from operations = Net operating profit + Decrease in debtors = 90,000+40,000=1,30,000.
If the net operating profit of the business is Rs. 90,000 and the debtors have decreased during the year by Rs. 40,000. Cash from operations is:
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Rs. 90,000
Rs. 50,000
Rs. 1,30,000
Rs. 40,000
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Work through every CUET UG Financial Statements PYQ, year by year.