Question

From the following details, calculate Cash Flow from Investing Activities: - Purchase of Machinery Rs 1,50,000
- Sale of Land Rs 80,000
- Purchase of Investments Rs 50,000
- Interest received Rs 8,000

Hint:

In investing activities, purchases are outflows (–), and income like sale proceeds or interest/dividend received are inflows (+).

Answer 1

Cash Flow from Investing Activities:
\[ \text{- Purchase of Machinery} = -Rs 1,50,000
\text{+ Sale of Land} = +Rs 80,000
\text{- Purchase of Investments} = -Rs 50,000
\text{+ Interest Received} = +Rs 8,000 \] \[ \text{Net Cash Flow} = -1,50,000 + 80,000 - 50,000 + 8,000 = -Rs 1,12,000 \] Final Answer: \[ \boxed{\text{Cash used in Investing Activities = Rs 1,12,000}} \]