Calculate cash flow from financing Activities of X Ltd. which is a financing company.
Issue of shares Rs. 1,00,000
Issue of Bonus shares Rs. 50,000
Dividend paid Rs. 10,000
Interest paid Rs. 5,000
Calculate cash flow from financing Activities of X Ltd. which is a financing company.
Issue of shares Rs. 1,00,000
Issue of Bonus shares Rs. 50,000
Dividend paid Rs. 10,000
Interest paid Rs. 5,000
Solution
✅ Correct Option: 1
For a financing company, interest paid is operating activity, not financing. Bonus shares are non-cash. Cash flow from Financing = Issue of shares - Dividend paid = 1,00,000 - 10,000 = 90,000.
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