A non-trading company pays Rs. 5,00,000 to acquire shares of Bloomberg Limited and it received…
Buying the shares uses Rs 5,00,000 in investing activities, while the dividend received provides an investing inflow of Rs 40,000 for a non-trading company. The net cash…
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A non-trading company pays Rs. 5,00,000 to acquire shares of Bloomberg Limited and it received Rs.40,000 as dividend after acquisition. In the Cash Flow Statement, these transactions will result in:
Answer and explanation
Correct answer C
Buying the shares uses Rs 5,00,000 in investing activities, while the dividend received provides an investing inflow of Rs 40,000 for a non-trading company. The net cash used in investing activities is therefore Rs 5,00,000 - Rs 40,000 = Rs 4,60,000.
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Telangana SET (TG SET)