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. |
Outflow ₹50,000 Inflow ₹1,50,000 Outflow ₹1,50,000 Inflow ₹50,000 |
Inflow ₹50,000 |
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 Since the result is positive, it represents an inflow of cash. |