Read the following hypothetical text and answer the given question on this basis:

Madhav is a young entrepreneur. On 1st April, 2019, he formed a partnership firm with two of his friends, Mohan and Sohan. They started their business of exporting dry fruits. Their business was a successful business. Now they wanted to expand the business in many other countries. For meeting the financial requirements, they changed the form of business organisation and formed Madhav Ltd. The Balance Sheet of Madhav Ltd. as at 31.3.2022 was as follows:

Balance Sheet of Madhav Ltd. as at 31st March, 2022
Particulars Note No. 31.03.2022
I Equity and Liabilities:
Shareholders’ Funds
(a) Share Capital 35,00,000 25,00,000
(b) Reserves and Surplus
(Statement of P&L)
12,50,000 10,00,000
2. Non-Current Liabilities
Long-term Borrowings
(10% Debentures)
12,50,000 3,50,000
3. Current Liabilities
Short-term Borrowings
(Bank overdraft)
50,000 75,000
(b) Trade Payables 2,50,000 1,50,000
(c) Short-term Provisions 1 1,50,000 75,000
Total 64,50,000 41,50,000
II Assets :
1. Non-Current Assets
Fixed Assets
(a) Tangible Assets 2 40,00,000 22,50,000
(b) Intangible Assets (Goodwill) 3,50,000 5,00,000
2. Current Assets
(a) Inventories 6,25,000 5,00,000
(b) Trade Receivables 12,50,000 7,50,000
(c) Cash and Cash Equivalents 2,25,000 1,50,000
Total 64,50,000 41,50,000
Notes to Accounts:
Note No. Particulars 31.03.2022
1 Short-term Provisions
Provision for Tax 1,50,000 75,000
2 Fixed Assets
Plant and Machinery 44,00,000 25,00,000
Accumulated Depreciation (4,00,000) (2,50,000)
Total 40,00,000 22,50,000
Additional Information:

(i) A part of the machine costing 1,25,000 accumulated depreciation thereon being 50,000 was sold for 45,000 during the year.

(ii) Interest of 1,25,000 was paid on Debentures.

Calculate cash flows from Investing and Financing activities of Madhav Ltd. from the information provided above.

Marks-6, CBSE:2022-23/Zone-4/Set-1/Q-34

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