- Cash from Operating Activities
- Cash from Investing Activities
- Cash from Financing Activities
- Treatment of Some Peculiar Items
Short Answer Question
How are the various activities classified (as per AS-3 revised) while preparing cash flow statement?
For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing.
(a) Acquired machinery for Rs 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) Paid Rs 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs 50,000 after acquisition.
(c) Sold machinery of original cost Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000.
Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:
|(a) Cash Sale of Goods||(b) Cash Received against Revenue from Services rendered
|(c) Cash Purchase of Goods||(d) Cash Paid against Services Taken|
|(e) Patents Purchased||(f) Marketable Securities|
|(g) Bank Overdraft||(h) Proceeds from Issue of Debentures|
|(i) Purchase of Shares||(j) Repayment of Long-term Loan|
|(k) Commission Received||(l) Redemption of Debentures|
|(m) Interest on Debentures||(n) Interest on Investments|
|(o) Income Tax Paid||(p) Income Tax Paid on Gain of Sale of Asset|
|(q) Cash Received from Debtors||(r) Cash Paid to Creditors|
Classify the following transactions as Operating Activities for a financial company and a non-financial company:
(a) Purchase of Shares on a Stock Exchange.
(b) Dividend received on Shares.
(c) Dividend paid on Shares.
(d) Loans given.
(e) Loans taken.
(f) Interest paid on borrowings.
For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing:
(a) Acquired machinery for ₹2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) Paid ₹2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of ₹50,000 after acquisition.
(c) Sold machinery of original cost of ₹2,00,000 with an accumulated depreciation of ₹1,60,000 for ₹60,000.
Answer the following question:
From the following information, calculate the amount of cash flow from investing activities.
Acquired machinery for 10,00,000, paying 10% immediately in cash and accepting a draft for the balance in favour of the vendor, payable after three months.