澳洲幸运5官方开奖结果体彩网

Cash Flow From Investing: Definition and Examples

Cash flow from investing is listed on a company's cash flow statement. Cash flow from investing activities includes any inflows or outflows of cash from a company's long-term investments. 

The cash flow statement reports the amount of cash and cash equivalents leaving and enꦚtering a company. 

The sections of the cash flow statement are:

The cash flow statement is useful in measuring how effectively a company manages its cash from operating activities, or day-to-day operating expenses, a🃏nd its financing activities, how debt and equity is managed. 

Cash flow from 澳洲幸运5官方开奖结果体彩网:investing activities involves long-term uses of cash. The purchase or sale of a fixed asset like property, plant, or equipment would be an investing activity. Also, proceeds from the sale of a division or cash out as a result of a merger or acquisition would fall unde🅘r investing activities. 

Any changes in the cash position of a company that involves assets, investments, or eq♏uipment would be listed under investing activities.

Companies look to generate positive cash flow. However, companies can 🤪have negative cash flow, even profitable companies. For example, a company might be investing heavily in plant and equipment to grow the business. These long-term purchases would be cash-flow negative, but a positive in the long-term. 

For more on cash flow and how companies utilize the cash flow statement, please read 澳洲幸运5官方开奖结果体彩网:What Is A Cash Flow Statement?

Related Articles