Answer to Question #211208 in Finance for N M Rao

Question #211208

Company purchased land for Rs 37,50,000. Company also sold 9,50,000/-. What the investment capacity of company as per cash flow statement.


1
Expert's answer
2021-06-28T17:20:02-0400

The cash flow statement is the statement that shows the summary of cash inflows and cash outflows. The cash from investing activities shows the investment funds invested in the nin-current assets of the company.


Compute the investment capacity of the company, using the equation as shown below:


Hence, the investment capacity of the company is –$2,800,000.


The investment capacity of the company is –$2,800,000.


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