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 (all figures in rupees):
Depreciation charges 9,80,000;

Profit on sale of non-current assets 40,000;

Increase in inventories 1,30,000;

Decrease in receivables 1,00,000; Increase in payables 80,000.
What will be the net effect of these items in the cash flow statement ?
A. Addition to operating profit 8,90,000;
B. Subtraction from operating profit 8,90,000
C. Addition to operating profit 9,90,000.