Question

A company reported a net profit of ₹10 lakh. During the year, depreciation was ₹4 lakh, accounts receivable increased by ₹2 lakh, inventory decreased by ₹1 lakh, and accounts payable decreased by ₹3 lakh. What is the cash flow from operating activities using the indirect method?

A ₹8 lakh
B ₹10 lakh
C ₹9 lakh
D ₹7 lakh
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