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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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