In the course of preparing a company s cash flow statement, the following figures are to be included in the calculation of net cash from operating activities:Depreciation charges Rs.9,80,000 Profit on sale of non-current assets Rs.40,000Increase in inventories Rs.1,30,000 Decrease in receivables Rs.1,00,000Increase in payables Rs.80,000What will be the net effect of these items in the cash flow statement?

• A. addition to operating profit Rs.8,90,000
• B. subtraction from operating profit Rs.8,90,000
• C. addition to operating profit Rs.9,90,000
• D. addition to operating profit Rs.10,70,000