As 3- cash flow statement
This query is : Resolved
01 May 2013
TATA ltd. picked up 51% equity stake in VSNL for rs.5000 crores. It earned a net cash flow from operating activities of rs.1200 crores. Out of this,rs.200 crores was received from VSNL in consideration of services provided by TATA ltd. to its subsidiary. TATA ltd. presented its cash flow statement as :
CASH FLOW FROM OPERATING ACTIVITIES :
operating inflow 1200cr
less: investment in subsidiary (5000)cr
________
(3800)cr
is it correct ?
CASH FLOW FROM OPERATING ACTIVITIES :
operating inflow 1200cr
less: investment in subsidiary (5000)cr
________
(3800)cr
is it correct ?
01 May 2013
not a right way, investment in subsidiary has to be shown under the head "cash flow from investment activities".
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