Question : 'ACC Ltd.' is carrying on a paper manufacturing business. In the current year, it purchased machinery for Rs. 40,00,000; it paid salaries of Rs. 60,000 to its employees; it required funds for expansion and therefore, issued shares of Rs. 20,00,000. It earned a profit of Rs. 9,00,000 for the current year.
Find out Cash Flow from Operating Activities.
Option 1: Rs 9,00,000
Option 2: Rs 8,40,000
Option 3: Rs 9,20,000
Option 4: None of the above
Correct Answer: Rs 9,00,000
Solution : Answer = Rs 9,00,000
Cash Flow from Operating Activities = Net Profit of the Company Rs. 9,00,000.
Hence, the correct option is 1.




