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M.A.T.E.. CASH FLOW STATEMENT. By CA Akhil Kumar Mittal.

. Cash Flow Statement. A cash flow statement (CFS) is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The CFS measures how well a company manages its cash position, meaning how well the company generates cash. The CFS complements the balance sheet and the income statement. The main components of the CFS are cash from three areas: operating activities, investing activities, and financing activities. The two methods of calculating cash flow are the direct method and the indirect method and we will be studying indirect method only..

. Cash Flow from Investing Activities. Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include- P urchases of physical assets, P urchases of investments in securities, Sale of investment securities ( Only long term investments) Sale of assets..

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. Question 23. Mars Limited has plant and machinery whose written down value on 01 April 2020 was ₹ 9,60,000 and on 31 March 2021 was ₹ 10,50,000. Depreciation for the year was ₹ 35,000. In the beginning of the year, a part of plant was sold for ₹ 45,000 which had a written down value of ₹ 30,000. Prepare cash flow statement from investing activities..

. Question 36. From the following information, calculate cash flow from investing activities..