Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Calculate Cash Flow from Investing Activities :
Balances as on 31.3.2021 Balances as on 31.3.2022
Machinery- 5,00,000 5,75,000
Patents - 1,00,000 80,000
Investment - 3,00,000 5,00,000
Dividend Received on Investment - 10,000

Options:

₹2,55,000 Cash Inflow

₹2,55,000 Cash Outflow

₹2,45,000 Inflow

₹2,45,000 Outflow

Correct Answer:

₹2,45,000 Outflow

Explanation:

"Cash paid for machinery -(75,000)
Proceed from sale of Patents - 20,000
Cash paid to purchase of Investment - (2,00,000)
Dividend Received - 10,000
Net Cash used in Investing Activities = 2,45,000"