With the help of following information of a company, calculate Cash Flow from Financing Activities.
April 1, 2016 March 31, 2017
Long term loans (₹) 2,00,000 (₹) 2,50,000
During the year the company repaid a loan of 1,00,000.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Inflow 50,000
Cash Flow from Financing Activities = Long-term loans at the beginning - Long-term loans at the end + Repayments during the year.
Cash Flow from Financing Activities = 2,00,000 - 2,50,000 + 1,00,000
= 2,00,000 - 2,50,000 + 1,00,000
= 50,000
Since the result is positive, it represents an inflow of cash. So, there is an inflow of 50,000.