M/s Mevo and Sons; a bamboo pens producing company, purchased a machinery For Rs. 9,00,000. It received dividend of Rs. 70,000 on investment in shares. The company also sold an old machine of the book value of Rs. 79,000 at a loss of Rs. 10,000. Compute Cash flow from Investing Activities. (C B S E. Sample Paper 2019)

SOLUTION

Cash flow from Investing Activities

InflowsAmount (Rs.)
Dividend Received70,000
Sale of Old Machinery69,000
Outflows 
Purchase of Machinery(9,00.000)
Net Cash Out (low from Investing Activities(7,61,000)


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