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 ____________________
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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.
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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
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