To calculate Cash Flows from Investing Activities, we consider the changes in Plant and Machinery and Goodwill, as well as the sale of the machine.
Cash Flow from Sale of Machine:
The sale of the machine results in an inflow of ₹ 62,000. The book value of the machine is ₹ 85,000 - ₹ 15,000 = ₹ 70,000. Therefore, the cash inflow from the sale of the machine is:
\[
\text{Cash inflow from sale of machine} = ₹ 62,000 \quad \text{(proceeds from sale)} - ₹ 70,000 \quad \text{(book value of machine)} = -₹ 8,000
\]
Change in Plant and Machinery:
The net increase in Plant and Machinery is:
\[
\text{Increase in Plant and Machinery} = ₹ 4,10,000 - ₹ 3,00,000 = ₹ 1,10,000
\]
This increase is considered as an outflow of cash.
Change in Goodwill:
The increase in Goodwill is:
\[
\text{Increase in Goodwill} = ₹ 1,80,000 - ₹ 80,000 = ₹ 1,00,000
\]
This is also an outflow of cash.
Cash Flow from Investing Activities:
\[
\text{Cash Flows from Investing Activities} = \text{Proceeds from sale of machine} - \text{Increase in Plant and Machinery} - \text{Increase in Goodwill}
\]
\[
= - ₹ 8,000 - ₹ 1,10,000 - ₹ 1,00,000 = - ₹ 2,18,000
\]