Question

LG Company Limited earned a net profit of ₹ 7,00,000 for the year ended 31.03.2025. Depreciation for the year is ₹ 1,50,000. There was a profit of ₹ 60,000 on assets sold which was transferred to statement of profit and loss.
Trade receivables decreased during the year by ₹ 55,000 and trade payables also decreased by ₹ 45,000.
Compute cash flow from operating activities by indirect method.

Hint:

Rules for Working Capital adjustments:
Decrease in Current Assets $\rightarrow$ ADD
Increase in Current Assets $\rightarrow$ LESS
Increase in Current Liabilities $\rightarrow$ ADD
Decrease in Current Liabilities $\rightarrow$ LESS

Answer 1