Question

5.
On 1.10.2018, Micro Ltd. issued 20,000, 8% debentures
paid interest of * 80,000 on these debentures on 31st M
Calculate the cash flow from financing activities for the period
31st March, 2019.
8% debentures of * 100 each and
ntures on 31st March, 2019.
lod ending​

Answer 1

The cash flow from financing activities for the period amounts to 80,000

Explanation:

Cash flow from financing activities, it is that section or part of cash flow statement, which states the net flows of cash used to fund the company. And it involves the dividends, debt and equity.

The cash flow from financing activities for the period is computed as:

Proceeds from Issue of 8% Debenture                160,000

Less: Interest Paid                                                  (80,000)

Cash flow from financing activities                         80,000

Therefore, the cash flow from financing activities is 80,000