1) For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow namely, operating, investing and financing.
a) Acquired machinery for ?2,50,000 paying 20% down and executing a bond for the balance amount.
b) Paid ?2,50,000 to acquire shares in Infosys Ltd. And received a dividend of ?50,000 after acquisition.
c) Sold machinery of original cost ?2,00,000 with an accumulated depreciation of ?1,60,000 for ?60,000 only.
2) Classify the following transactions according to ‘operating', ‘investing' and ‘financing' activities:
a) 500, 12% Debentures of ?100 each converted into equity shares of equal amount.
b) 10,000 equity shares of ?10 each issued to supplier of machinery.
c) Profit on sale of fixed assets ?15,000
d) Dividend received on shares ?8,000.