K Ltd., a manufacturing company obtained a loan of Rs. 6,00,000, advanced a loan of Rs. 1.00,000 and purchased machinery for Rs. 5,00,000. Calculate the amount of Cash Flow from financing and investing activities. (C.B.S.E. 2019, M.P.)

SOLUTION

Cash Flows from Financing Activities

Particulars	Details	Amount (Rs.)
Loan raised	6,00,000
Net Cash Inflows from Financing Activities		6,00,000

Particulars	Details	Amount (Rs.)
Loan Advanced	(1,00,000)
Machinery Purchased	(5,00,000)
Net cash used in Investing Activities	(6,00,000)	(6,00,000)