Final answer:
The Cash Flow from Investing Activities for Welprint Ltd is calculated by determining the net cash inflow from selling machinery (₹40,000) and subtracting the outflow from purchasing new machinery (₹10,000), resulting in a net cash inflow of ₹30,000.
Step-by-step explanation:
To calculate the Cash Flow from Investing Activities for Welprint Ltd, we need to consider the purchase and sale of machinery during the financial year 2018-2019. The cash outflows for new machinery acquisitions and inflows from disposals must be accounted for. When a company disposes of its assets, like in this case where machinery worth ₹25,000 with accumulated depreciation of ₹15,000 is sold, the calculation involves both the original cost of the machinery and the accumulated depreciation to determine the book value of the sold assets. The book value of the machinery sold is calculated as the original cost minus the accumulated depreciation, which is ₹25,000 - ₹15,000 = ₹10,000. Since the machinery was sold for ₹50,000, the cash inflow from this disposal is ₹50,000 - ₹10,000 = ₹40,000, which represents a gain.
Furthermore, we must consider the purchase of additional machinery. The value of machinery increased from ₹50,000 to ₹60,000, indicating that ₹10,000 worth of new machinery was purchased. Thus, this is a cash outflow of ₹10,000.
The net Cash Flow from Investing Activities can therefore be calculated as the total cash inflows from sales of machinery minus any cash outflows for the purchase of new machinery. In this case, it is ₹40,000 (inflows) - ₹10,000 (outflows), resulting in a net cash inflow from investing activities of ₹30,000.