Cash Flow from Operating Activities

The following information is available for a company, Ted Limited:

Particulars

Amount

Received interest

37,000

Paid cash dividends

29,000

Borrowed a five-year loan

12,00,000

Profit after tax

4,50,000

Depreciation and amortisation

1,25,000

Increase in current assets

3,05,000

Purchased a new building

8,00,000

Sale of machinery

2,50,000

Purchased new equipment

2,20,000

Investment in the shares of Stew Limited

1,00,000

Decrease in current liabilities

2,35,000

Dividend received

5,000

Income taxes paid

25,500

Income tax expense

25,500

Calculate Ted Limited's cash flow from operating activities, and select the correct option from below.

Note: The 'income tax expense' is used to calculate the 'profit after tax' in the income statement. The 'income tax paid' is the actual tax amount paid in cash. Sometimes 'income tax expense' and 'income tax paid' may be different (like in the Infosys example).

• -7,000
• 69,000
• 53,035
• 60,500