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Question No: 02 This is a subjective question, hence you have to write your answer in the Text-Field given below. SEAT Manufacturing company Ltd reported

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Question No: 02 This is a subjective question, hence you have to write your answer in the Text-Field given below. SEAT Manufacturing company Ltd reported a net income of Rs 80,000, and depreciation expense and amortization expense of Rs 1500 and Rs 500, respectively for the period 2016. The company also reported the following details during the year: Increase in inventory Rs 2000; Paid cash dividend Rs 2000; Decrease in account receivable Rs 1000; Increase in account payable Rs 1000; Paid long-term debt principal Rs 6000 and paid short-term debt principal Rs 4000; Cash receipt of loan repayments Rs 5000; Increase in income tax payable Rs 3000. (a) Find out what is the net cash flows from operating activities? (b) What is the net cash flows from investing activities? [6 Marks]

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