Question

X Ltd made a profit of₹.6,00,000 before considering depreciation on Machinery₹.50,000 and Loss on sale of computer₹.10,000. The amount to be shown as Cash Flows of Operating activities is ____________________

Answer 1

Explanation:

Operating profit is the income earned from the core operations of a business, excluding any financing or tax-related issues. The concept is used to investigate the profit-making potential of a business, excluding all extraneous factors.

Answer 2

Answer:

Cash generated from operating activities is 6,60,000

Explanation:

Net profit before tax  -  6,00,000

Add: Depreciation - 50000

Add: Loss on sale of computer - 10000

Cash generated from operating activities: 660000