Question
The company reported: • Purchase of Fixed
Assets = ₹4,00,000 • Sale of Machinery = ₹1,50,000 (Book Value ₹1,20,000) • Purchase of Investments = ₹2,00,000 • Interest Received = ₹20,000 What is the Net Cash Flow from Investing Activities?Solution
• Cash Outflows: o Fixed Asset Purchase = ₹4,00,000 o Investment Purchase = ₹2,00,000 • Cash Inflows: o Machinery Sale = ₹1,50,000 o Interest Received = ₹20,000 Net Cash Flow=(₹1,50,000+₹20,000)–(₹4,00,000+₹2,00,000)=₹1,70,000–₹6,00,000=₹(4,30,000)
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