Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the
year ended March31, 2019
Particulars Amount
Plant acquired 160000
Claim received for loss of plant in fire 45500
Unsecured loans given to subsidiaries 595000
Interest on loan received from subsidiary companies 72500
Also give reasons for the classification of above activities as inflow and outflow
Answers
Cash Flow from Investing Activities is the section of a company’s cash flow statement that displays how much money has been used in (or generated from) making investments during a specific time period. Investing activities include purchases of long-term assets (such as property, plant, and equipment), acquisitions of other businesses, and investments in marketable securities (stocks and bonds).
Cash receipts: 45500 + 72500 = 118000.
Cash paid: 160000 + 595000 = (755000).
Net cash flow: 118000 - 755000 = (637000).
The answer is shown below:
Explanation:
Investing activities: It records the activities that include buying and selling long-term assets. The buying is a cash outflow as it reduces the cash balance, while the selling is a cash inflow as it increases the cash balance
Cash flows from investing activities
Claim received for loss of plant in fire $45,500
Interest on a loan received from subsidiary companies $72,500
Less: Plant acquired -$160,000
Less: Unsecured loans are given to subsidiaries -$595,000
Net cash flows used by the investing activities -$637,000
The first two statements which are displayed in a positive amount reflect the cash inflow as cash is received whereas the last two statements reflect the cash outflow as cash is gone.
Learn more
What are investing activities
https://brainly.in/question/292666