Advanced AccountingQuestion 5278 of 305
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12. What would be the value of Cash Flow from Investing Activities?

Options

A` 54,300
B` 1,04,300
C` 29,300
D` (500)
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Correct Answer

Option A` 54,300

All Options:

  • A` 54,300
  • B` 1,04,300
  • C` 29,300
  • D` (500)

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Detailed Solution & Explanation

To compute Net Cash Flow from Investing Activities from the summary cash account under AS 3:
1. Investing Inflows:
- Rent from Property held as Investment: 64,000\displaystyle `\,64,000
- Sale of Investment: 49,500\displaystyle `\,49,500
- Total Investing Inflows = 1,13,500\displaystyle `\,1,13,500
2. Investing Outflows:
- Brokerage on Sale of Investment: 9,200\displaystyle `\,9,200
- Purchase of Goodwill: 50,000\displaystyle `\,50,000
- Total Investing Outflows = 59,200\displaystyle `\,59,200
3. Net Cash from Investing Activities is:
Net Investing Cash Flow=1,13,50059,200=54,300\text{Net Investing Cash Flow} = `\,1,13,500 - `\,59,200 = `\,54,300
Hence, **Option A** is the correct answer.

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