For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing. (a) Acquired machinery for Rs 2,50,000 paying 20% by cheque andexecuting a bond for the balance payable.(b) Paid Rs 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs 50,000 after acquisition. (c) Sold machinery of original cost Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000.

For each of the following transactions, calculate the resulting cash f

1.	For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing. (a) Acquired machinery for Rs 2,50,000 paying 20% by cheque andexecuting a bond for the balance payable.(b) Paid Rs 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs 50,000 after acquisition. (c) Sold machinery of original cost Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : (a) <a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a> (50,000) <a href="https://interviewquestions.tuteehub.com/tag/investing-1050800" style="font-weight:bold;" target="_blank" title="Click to know more about INVESTING">INVESTING</a> activity (outflow), (b) Rs (2,00,000) investing activity (outflow), (c) Rs 60,000 investing activity (inflow).</body></html>

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