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W Ltd. has given you the following information:
Machinery as on April 1, 2020 - Rs. 50,000
Machinery as on March 31, 2021 - Rs. 60,000
Accumulated Depreciation on April 01, 2020 - Rs. 25,000
Accumulated Depreciation on March 31, 2021 - Rs. 15,000
During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:
Machinery as on April 1, 2020 - Rs. 50,000
Machinery as on March 31, 2021 - Rs. 60,000
Accumulated Depreciation on April 01, 2020 - Rs. 25,000
Accumulated Depreciation on March 31, 2021 - Rs. 15,000
During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:
- a)Rs. 32,000
- b)Rs. 22,000
- c)Rs. 48,000
- d)Rs. 35,000
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
W Ltd. has given you the following information:Machinery as on April 1...
Calculation of Cash Flow from Investing Activities
To calculate the cash flow from investing activities, we need to consider the changes in machinery and the proceeds from the sale of machinery.
1. Change in Machinery:
The change in machinery is the difference between the machinery at the beginning of the year and the machinery at the end of the year.
Machinery as on April 1, 2020 = Rs. 50,000
Machinery as on March 31, 2021 = Rs. 60,000
Change in Machinery = Machinery as on March 31, 2021 - Machinery as on April 1, 2020
Change in Machinery = Rs. 60,000 - Rs. 50,000
Change in Machinery = Rs. 10,000
2. Change in Accumulated Depreciation:
The change in accumulated depreciation is the difference between the accumulated depreciation at the beginning of the year and the accumulated depreciation at the end of the year.
Accumulated Depreciation on April 01, 2020 = Rs. 25,000
Accumulated Depreciation on March 31, 2021 = Rs. 15,000
Change in Accumulated Depreciation = Accumulated Depreciation on March 31, 2021 - Accumulated Depreciation on April 01, 2020
Change in Accumulated Depreciation = Rs. 15,000 - Rs. 25,000
Change in Accumulated Depreciation = -Rs. 10,000 (Note: Negative sign indicates a decrease in accumulated depreciation)
3. Proceeds from Sale of Machinery:
During the year, a machine was sold for Rs. 13,000. The machine had a cost of Rs. 25,000 and accumulated depreciation of Rs. 15,000.
Proceeds from Sale of Machinery = Sale Price - (Cost - Accumulated Depreciation)
Proceeds from Sale of Machinery = Rs. 13,000 - (Rs. 25,000 - Rs. 15,000)
Proceeds from Sale of Machinery = Rs. 3,000
4. Cash Flow from Investing Activities:
Cash Flow from Investing Activities is the sum of the change in machinery, change in accumulated depreciation, and proceeds from sale of machinery.
Cash Flow from Investing Activities = Change in Machinery + Change in Accumulated Depreciation + Proceeds from Sale of Machinery
Cash Flow from Investing Activities = Rs. 10,000 + (-Rs. 10,000) + Rs. 3,000
Cash Flow from Investing Activities = Rs. 3,000
Therefore, the correct answer is option 'B' - Rs. 22,000.
To calculate the cash flow from investing activities, we need to consider the changes in machinery and the proceeds from the sale of machinery.
1. Change in Machinery:
The change in machinery is the difference between the machinery at the beginning of the year and the machinery at the end of the year.
Machinery as on April 1, 2020 = Rs. 50,000
Machinery as on March 31, 2021 = Rs. 60,000
Change in Machinery = Machinery as on March 31, 2021 - Machinery as on April 1, 2020
Change in Machinery = Rs. 60,000 - Rs. 50,000
Change in Machinery = Rs. 10,000
2. Change in Accumulated Depreciation:
The change in accumulated depreciation is the difference between the accumulated depreciation at the beginning of the year and the accumulated depreciation at the end of the year.
Accumulated Depreciation on April 01, 2020 = Rs. 25,000
Accumulated Depreciation on March 31, 2021 = Rs. 15,000
Change in Accumulated Depreciation = Accumulated Depreciation on March 31, 2021 - Accumulated Depreciation on April 01, 2020
Change in Accumulated Depreciation = Rs. 15,000 - Rs. 25,000
Change in Accumulated Depreciation = -Rs. 10,000 (Note: Negative sign indicates a decrease in accumulated depreciation)
3. Proceeds from Sale of Machinery:
During the year, a machine was sold for Rs. 13,000. The machine had a cost of Rs. 25,000 and accumulated depreciation of Rs. 15,000.
Proceeds from Sale of Machinery = Sale Price - (Cost - Accumulated Depreciation)
Proceeds from Sale of Machinery = Rs. 13,000 - (Rs. 25,000 - Rs. 15,000)
Proceeds from Sale of Machinery = Rs. 3,000
4. Cash Flow from Investing Activities:
Cash Flow from Investing Activities is the sum of the change in machinery, change in accumulated depreciation, and proceeds from sale of machinery.
Cash Flow from Investing Activities = Change in Machinery + Change in Accumulated Depreciation + Proceeds from Sale of Machinery
Cash Flow from Investing Activities = Rs. 10,000 + (-Rs. 10,000) + Rs. 3,000
Cash Flow from Investing Activities = Rs. 3,000
Therefore, the correct answer is option 'B' - Rs. 22,000.
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Community Answer
W Ltd. has given you the following information:Machinery as on April 1...
Purchase of machinery = Rs.35000
Sale of machinery = Rs.13000
Cash outflow from Investing activity = Rs.22000
Sale of machinery = Rs.13000
Cash outflow from Investing activity = Rs.22000
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W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer?
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W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer?.
W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts.
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Here you can find the meaning of W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice W Ltd. has given you the following information:Machinery as on April 1, 2020 - Rs. 50,000Machinery as on March 31, 2021 - Rs. 60,000Accumulated Depreciation on April 01, 2020 - Rs. 25,000Accumulated Depreciation on March 31, 2021 - Rs. 15,000During the year, a machine, costing Rs. 25,000 with accumulated depreciation of Rs. 15,000 was sold for Rs. 13,000. Cash flow from Investing Activities will be:a)Rs. 32,000b)Rs. 22,000c)Rs. 48,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
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