Financial Statements

Cash Flow

Hard

Nitin Ltd. provides you the following information.

Particulars 1 April 2021 31 March 2022
Machinery 2,40,000 3,50,000
Accumulated Depreciation 50,000 45,000

During the year, a machine costing Rs. 90,000 with accumulated depreciation of Rs. 31,500 was sold for Rs. 52,000.

Calculate Cash Flow from Investing Activities on the basis of the above information.

Particulars	1 April 2021	31 March 2022
Machinery	2,40,000	3,50,000
Accumulated Depreciation	50,000	45,000

2,00,000

52,000

1,48,000

1,52,000

✅ Correct Option: 3

Machinery purchased = 3,50,000 minus (2,40,000 minus 90,000) = 3,50,000 minus 1,50,000 = 2,00,000.

Sale proceeds = 52,000.

Net CF from Investing = 52,000 minus 2,00,000 = Rs. 1,48,000 outflow.

2026: 20 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Receipt from royalties, fees, commission and other revenue	(I) Investing Activity
(B) Receipt from Interest and dividends	(II) Operating Activity
(C) Proceeds from issue of preference or equity shares	(III) Cash and Cash equivalent
(D) Current Investment	(IV) Financing Activity

Choose the correct answer from the options given below:

2026: 12 May Shift 1

While making cash flows from operating activities, which one of the following will be deducted from Cash generated from operations?

2025: 27 May Shift 2

ABC Ltd. has given you the following information:

	Rs.
Machinery as on April 01, 2024	50,000
Machinery as on March 31, 2025	60,000
Accumulated Depreciation on April 01, 2024	25,000
Accumulated Depreciation on March 31, 2025	15,000

During the year, a Machine costing Rs. 25,000 with Accumulated Depreciation of Rs. 15,000 was sold for Rs. 13,000.

Calculate cash flow from Investing Activities on the basis of the above information.

2023: 29 May Shift 2

Separate disclosure of cash flow arising from Financial Activities is important because

2023: 20 June Shift 2

Particulars	Amount (Rs.)
Inventory at the beginning	40,000
Credit Purchase	1,60,000
Inventory at the end	38,000
Trade payable at the beginning	14,000
Trade payable at the end	14,500

Cash paid for inventory is:

2022: 16 July Shift 2

Operating Expenses include

A. Rent paid

B. Interest paid on loan

C. Selling and Distribution Expenses

D. Commission Received

E. Salaries Paid

Choose the correct answer from the options given below:

Solution