X Ltd. sold machinery having a book value of Rs. 25,000 (on which accumulated depreciation of Rs. 5,000 had been charged) at a profit of Rs. 3,000. The cash flow from investing activities will be :
X Ltd. sold machinery having a book value of Rs. 25,000 (on which accumulated depreciation of Rs. 5,000 had been charged) at a profit of Rs. 3,000. The cash flow from investing activities will be :
Solution
✅ Correct Option: 4
Sale Price = Book Value + Profit on Sale = 25,000 + 3,000 = 28,000. Under Investing Activities, the sale proceeds of machinery are shown as inflow. Cash Flow from Investing = 28,000.
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