Answer to Question #99071 in Finance for viral

Question

Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the year ended March31, 2019
Plant acquired 160000
Claim received for loss of plant in fire 45500
Unsecured loans given to subsidiaries 595000
Interest on loan received from subsidiary companies 72500


Also give reasons for the classification of above activities as inflow /outflow

Answer 1

CASH FLOW STATEMENT FROM INVESTMENT ACTIVITIES of Alpha Creative Ltd

for the year ended March 31, 2019

Plant acquired (160,000)

Unsecured loans given to subsidiaries (595,000)

Interest on loan received from subsidiary companies 72,500

Net cash from investing activities (682,500)

NOTES

Alpha Creative Ltd had cash outflows for Acquisition of Plant and Loans to subsidaries, and cash inflow from Interest of loan.

Item "Claim received for loss of plant in fire" is not cash flow.