Purchase of fixed assets cash flow statement : When an asset is purchased in cash then it results in outflow of cash and since payment of cash for purchase of fixed asset is an investment, so the purchase amount is deducted from the cash flow from investing activities. Few examples are as given below:
Purchase of fixed assets cash flow statement: Example 1
Following is the information available from the books of Akash Ltd.
Cash flow from investing activities will be:
Explanation : –
Purchase of fixed assets in cash flow statement: Example 2
Cash flow from investing activities from the following information will be:
Explanation : –
Purchase of fixed assets in cash flow statement: Example 3
Following is the information available from ABC Ltd
Additional information:
1 Half of the investment held in the beginning of the year was sold at a profit of 2 %.
2 Depreciation on fixed Assets was Rs 100000 for the year
3 Interest received on investment was Rs 90000
4 Dividend received on investment Rs 70000
Cash flow from Investing activities will be:
Explanation : –
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