Question

Net profit before tax = Rs. 8,00,000. Depreciation = Rs. 1,50,000. Increase in debtors = Rs. 80,000. Increase in creditors = Rs. 60,000. Income tax paid = Rs. 2,00,000. What is cash flow from operating activities (indirect method)?

A Rs. 6,30,000
B Rs. 7,30,000
C Rs. 7,60,000
D Rs. 6,80,000
E Rs. 7,00,000
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