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Question :

Calculate Cash Flow From Investing activities From the following information -

Particulars

Amount

Purchase of machine

300000

Purchase of goodwill

150000

Purchase of Investment

200000

Sale of Machine

85000

Sale of inveatment

80000

Sale of Patents

90000

Interest and dividend Received

60000

Rent Received

80000

 

Option 1: Rs.(2,55,000)

Option 2: Rs.6,50,000

Option 3: Rs.3,95,000

Option 4: None of the Above


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs.(2,55,000)


Solution :

  Cash Flow from Investing Activity    
Add Sale of Machine 85000  
  Sale of investment 80000  
  Sale of Patents 90000  
  Interest and dividend Received 60000  
  Rent Received 80000 395000
       
Less Purchase of Machine 300000  
  Purchase of Goodwill 150000  
  Purchase of Investment 200000 650000
  Net Cash used in Investing Activities   (255000)

Hence the correct answer is option 1.

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