For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing.
(a) Acquired machinery for Rs 2,50,000 paying 20% by cheque and
executing a bond for the balance payable.
(b) Paid Rs 2,50,000 to acquire shares in Informa Tech. and received a dividend
of Rs 50,000 after acquisition.
(c) Sold machinery of original cost Rs 2,00,000 with an accumulated
depreciation of Rs 1,60,000 for Rs 60,000.

Explanation

(a) Rs (50,000) investing activity (outflow), (b) Rs (2,00,000) investing activity (outflow), (c) Rs 60,000 investing activity (inflow).