The following information is available in relation to Britannia Baby Company. The Company has profit before taxes of Rs 50 lacs.

a. Classify and give reasons for the cash flows falling under the operating activities.

b. Classify and give reasons for the cash flows falling under the investing activities.

Particulars Amount Rs in (Lacs)

1. Tangible assets purchased during the year- 75 lacs

2. Depreciation charged on these tangible assets for the year at 10%

3. Stock sold for the year -95 lacs

4. Loan given to Big Boy Company -150 lacs

5. Interest received from Big Boy company for the said loan at 11.5%

6. Shares purchased of a company called as Arvind Mills 10 lacs

7. Dividend Received from Arvind Mills 1 lacs

8. Taxes paid for the year at 30%