Statement I: Issue of shares for cash increases both working capital and cash flow from financing activities. Statement II: Purchase of machinery for cash decreases working capital and appears under investing activities. Choose the correct answer from the options given below:

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Economics · Financial Statements Analysis

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Both statements are correct

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Answer 1

Both statements are correct

Answer 2

Both statements are incorrect

Answer 3

Statement I is correct, Statement II is incorrect

Answer 4

Statement I is incorrect, Statement II is correct

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