From the following transactions, calculate ‘Cash from Financing Activity’
Sale of Gold Bonds = 200000
Issue Shares = 300000; Issue Debentures = 200000
Redemption of old debentures = 80000 ; Buy back of Shares = 100000
Purchase Treasure Stock = 50000 ; Sale of Building = 650000
| A. |
320000 |
|
| B. |
750000 |
|
| C. |
450000 |
|
| D. |
800000 |
|
| E. |
None of Above |
| Calculate 'Cash from Financing Activity' | ||
| Correct Answer: Option A - 320000 | ||
| Working Notes: | ||
| Cash from Financing Activities | ||
| Issue Shares | 300000 | |
| Issue Debentures | 200000 | |
| 500000 | ||
| Less: | ||
| Redemption of old debentures | 80000 | |
| Buy back of shares | 100000 | |
| 180000 | ||
| Cash from Financing Activities | 320000 | |
| Note: sale of gold bonds ,sale of building ,purchase of treasure stock is a cash from "Investing Activities' not a cash from' Financing Activities'. |
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