Question

K Ltd., a sports goods manufacturing unit, purchased machinery for Rs. 20,00,000. It

paid salaries amounting to Rs. 50,000. It required funds for their expansion programme and

issued shares of Rs. 10,00,000. It earned a profit of Rs. 5,00,000 for the current year. What

will be the cash flow from operating activity?

(a) Rs.5,00,000 (b) Rs.6,00,000 (c) Rs.6,50,000 (d) Rs 4,50,000​

Answer 1

Answer:

option d is correct in this question

500000- 50000=450000

Explanation:

salary is operating expense so deduct from profit

purchase of machinery is investing activity

issue if shares is financing activity

Answer 2

OPTION D IS THE CORRECT ONE