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From the following information, calculate Cash Flow from Financing Activities:

1st April, 2018 (₹) 31st March,2019 (₹)
Long-term Loan 2,00,000 2,50,000
During the year, the company repaid a loan of ₹1,00,000.

User KingJackaL
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1 Answer

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Final answer:

To calculate Cash Flow from Financing Activities, we need to consider the changes in long-term loans during the given period. In this case, the company started with a long-term loan of ₹2,00,000 and ended with ₹2,50,000. Additionally, the company repaid ₹1,00,000 during the year.

Step-by-step explanation:

Cash Flow from Financing Activities reflects the inflow or outflow of cash associated with the company's long-term financing sources, including loans, issuing and repurchasing stock, and payment of dividends.

To calculate Cash Flow from Financing Activities, we need to consider the changes in long-term loans during the given period. In this case, the company started with a long-term loan of ₹2,00,000 and ended with ₹2,50,000. Additionally, the company repaid ₹1,00,000 during the year.

The calculation is as follows:

Beginning Long-term Loan + New Long-term Loans - Repayment of Loans = Cash Flow from Financing Activities

₹2,00,000 + (₹2,50,000 - ₹1,00,000) = ₹3,50,000

Therefore, the Cash Flow from Financing Activities is ₹3,50,000.

User SubChord
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