Financial Statements

Cash Flow

Medium

Financial Statements

LK Ltd acquired shares in Informa Tech. and paid Rs. 2,50,000 as purchase consideration and received a dividend of Rs. 50,000 after the acquisition. Calculate the resulting cash flow of LK Ltd.

Rs. 2,00,000 investing activity outflow

Rs. 2,00,000 investing activity inflow

Rs. 2,00,000 financing activity outflow

Rs. 2,50,000 financing activity inflow

✅ Correct Option: 1

Purchase of shares is an outflow of $2,50,000$ under investing activities, and dividend received on those investments is an inflow of $50,000$ , also investing for a non-financial company.

Net $= 2,50,000 - 50,000 = 2,00,000$ outflow from investing activities.

2023: 29 May Shift 2

Find out cash form financing Activities from the following information.

Item	Amount
Issue of Equity Shares	Rs. 80,000
Redemption of Preference Shares	Rs. 30,000
Interim Dividend Paid	Rs. 25,000
Interest on Debentures	Rs. 15,000
Issue of Debentures	Rs. 30,000

2022: 20 Aug Shift 2

Cash from operating activities before tax will be Rs. ________

2022: 20 July Shift 1

Identify the items NOT be shown under Investing Activities while making Cah Flow statement.

(a) Proposed Dividend

(b) Purchase of non-current Investments

(d) Sale of machinery

(e) Marketable securities

Choose the most appropriate answer from the options given below :

2026: 13 May Shift 1

From the following information, calculate cash flow from financing activities:

	April 1, 2025	March 31,2026
Long-term Loans	Rs. 2,00,000	Rs. 2,50,000

During the year, the company repaid a loan of Rs. 1,00,000.

2022: 8 Aug Shift 2

Which one of the following statement is false?

2022: 8 Aug Shift 2

How sale of equipment Rs. 90,000 (Book value Rs. 1,00,000) should be shown in the cash flow statement?

LK Ltd acquired shares in Informa Tech. and paid Rs. 2,50,000 as purchase consideration and received a dividend of Rs. 50,000 after the acquisition. Calculate the resulting cash flow of LK Ltd.

Solution

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