From the following particulars, Determine Cash flows from Investing Activities.

Additional Information:

A plot of land had been purchased for investment purpose and was let out for commercial purpose and rent received ₹45,000.

₹1,80,000 cash used

The correct answer is Option (3) → ₹1,80,000 cash used.

Machinery = Purchase (outflow) - Sold (inflow)
                = 3,50,000 - 2,75,000
               = ₹75,000 outflow

Land & building = Purchase (outflow) - Sold (inflow)
                      = 4,50,000 - 3,00,000
                      = ₹1,50,000 outflow

Rent received = ₹45,000 (inflow)

Cash flow from investing activity = 75,000 + 1,50,000 - 45,000
                                                   = ₹1,80,000 outflow.