"From the following information, calculate Closing Balance of Cash & Cash equivalent -
i. Cash generated from Operating Activities - 50,000
ii. Cash used in Investing Activities - 80,000
iii. Cash inflow from Financing Activities - 45,000
iv. Opening Balance of Cash - 35,000
v. Opening Marketable Securities - 20,000"
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹70,000.
Closing Balance of Cash & Cash equivalent = (Cash generated from Operating Activities - Cash used in Investing Activities + Cash inflow from Financing Activities + Opening Balance of Cash + Opening Marketable Securities)
= (50,000 + 45,000 + 35,000+ 20,000) - 80,000
= 70,000
Cash used in Investing Activities - 80,000 is deducted as it is an application or outflow of cash.