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Question
K Ltd., a manufacturing company obtained a loan of ₹ 6,00,000, advanced a loan of ₹ 1,00,000 and purchased machinery for ₹ 5,00,000. Calculate the amount of Cash Flow from financing and investing activities.
Solution
Computation of Cash Flow From Investing Activities
| Particulars |
Amount (₹) |
| Purchase of machinery | (5,00,000) |
| Advancement of Loan | (1,00,000) |
| Cash Used in Investing Activities | 6,00,000 |
Computation of Cash Flow From Financing Activities
| Particulars | Amount (₹) |
| Availed Loan | 6,00,000 |
| Cash Flow from Financing Activities | 6,00,000 |
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