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Baded on these information the cash flow from operation dhould be A-407000 B-423000 C-399000 D-425000
Answer option >>>>>>>>>>>>>>>>>>>> A-407000
Cash Flow Statement
Net Income.........................................................................4,00,000
Depreciation .....................20,000
Increase in A/R ................. (5,000)
Decrease in A/P................. (6,000)
Decrease in PP Rent.......... 6,000
Increase in Ac. Revenue......(8,000)
Hence the Cash Flow will be 4,07,000. (Option A)
(B) is the Correct Ans.
- Depreciation added back
- Increase in Assets Outflow & Vice Versa
- Increase in Liabilities Inflow & Vice Versa