Answer to Question #101129 in Economics for varsha

Question

Q. Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the
year ended March31, 2019

Particulars Amount
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 receipts :45500+72500

=118000

Cash paid:160000+595000

=(755000)

Net cash flow: 118000-755000

= (637000)

Cash Flow from Investing Activities is the section of a company’s cash flow statement that displays how much money has been used in or generated from investments during a specific time period.