Economics · Cash Flow Statement
A company, Zenith Manufacturing Ltd., is preparing its financial statements. During the year, the company purchased a new specialized machine for Rs. 50,00,000 and sold an old piece of equipment for Rs. 10,00,000. It also issued 5,000 new equity shares at a premium of Rs. 20 per share, and paid Rs. 2,00,000 interest on long-term bank loans. For the purpose of the Cash Flow Statement, what is the net cash flow from Investing Activities?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Net cash outflow of Rs. 38,00,000
- 2Net cash outflow of Rs. 50,00,000
- 3Net cash inflow of Rs. 10,00,000
- 4Net cash outflow of Rs. 40,00,000✓
Correct answer
Net cash outflow of Rs. 40,00,000
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