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
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.