From the following information of I Ltd., calculate Net Increase/Decrease in cash and cash equivalents during the year 2021-22.
i) Cash flow from Operating Activities: ₹2,35,000
ii) Cash used in investing Activities: ₹4,35,000
iii) Cash flow from financing activities: ₹2,35,000
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹35,000 Increase
The net increase or decrease in cash and cash equivalents is the sum of the net cash flows from the three activities, inflows positive and outflows negative.
Cash flow from operating activities = + ₹2,35,000
Cash used in investing activities = − ₹4,35,000
Cash flow from financing activities = + ₹2,35,000
Net change = ₹2,35,000 − ₹4,35,000 + ₹2,35,000 = + ₹35,000 (increase)
NCERT (2026-27 edition):
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