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.
Cash flow from Operating Activities: ₹ 2,35,000
Less : Cash used in investing Activities: ₹ 4,35,000
Add: Cash flow from financing activities: ₹ 2,35,000
Net Increase/Decrease in cash and cash equivalents = (2,35,000 - 4,35,000 + 2,35,000)
= 35,000 increase