Calculate cash flow from financing Activities of X Ltd, which is a financing company.
| Issue of shares | 1,00,000 |
| Issue of Bonus shares | 50,000 |
| Dividend paid | 10,000 |
| Interest paid | 5,000 |
Answer & explanation
Correct answer: option 1
The correct answer is option (1)- Rs 90,000.
Cash Flow from Financing Activities = (Issue of Shares) - (Dividend Paid)
Cash Flow from Financing Activities = (1,00,000) - (10,000)
Cash Flow from Financing Activities = ₹90,000
* Interest paid is operating activity.
* Bonus shares are issued from reserves no use of cash.