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Find out cash form financing Activities from the following information.

ItemAmount
Issue of Equity SharesRs. 80,000
Redemption of Preference SharesRs. 30,000
Interim Dividend PaidRs. 25,000
Interest on DebenturesRs. 15,000
Issue of DebenturesRs. 30,000

Solution

✅ Correct Option: 3

Cash from Financing: Inflows =80,000= 80{,}000 (equity) +30,000+ 30{,}000 (debentures) =1,10,000= 1{,}10{,}000. Outflows =30,000= 30{,}000 (pref. redemption) +25,000+ 25{,}000 (interim dividend) +15,000+ 15{,}000 (interest) =70,000= 70{,}000. Net inflow =1,10,000−70,000=40,000= 1{,}10{,}000 - 70{,}000 = 40{,}000.

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