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Numerical Example of Share Capital

A mutual fund...

Question

A mutual fund company receives a dividend of Rs. 25 lakhs on its investment in another company's shares. Why is it a cash inflow from operating activities for this company?

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Solution

A mutual fund company is a financial enterprise thus, dividend of Rs. 25 lakhs received by this company from its investment in shares is cash inflow from operating activities.

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Numerical Example of Share Capital

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