Increase in Bills Receivables = 40,000−20,000=20,000
Cash flow from operating activities = Net Profit - Increase in current assets
=1,00,000−20,000=80,000
Increase in bills receivables means cash not yet received, hence deducted.
CUET UG 2022 — Accountancy Financial Statements
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:
Held on 30 Aug 2022 · Verified 13 Jul 2026.
Rs. 60,000
Rs. 1,00,000
Rs. 80,000
Rs. 1,20,000
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