Reference no: EM132727633

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

Cash Flow Investing Activities

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

Problem 1: Calculate the cash flow from investing activities, and select the correct option from below.

Option 1: ?3,88,000
Option 2: ?7,28,000
Option 3: ?8,28,000
Option 4: ?2,88,000