Overview
Review Exhibit 7.14 and identify the second section of Wal-Mart’s cash flow statement—cash from investing activities. This section represents how much cash a company spent or received from additions or reductions to its fixed assets and investments during the specified period.
Exhibit 7.14. Cash Flow From Investing Activities Tracks Additions and Reductions to Fixed Assets and Monetary Investments During the Year
Source: Used with permission of Wal-Mart Inc.
In the lemonade stand example, this refers to how much cash was spent on the purchase of fixed assets (lemonade stand).
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