Crash Course in Accounting and Financial Statement Analysis, Second Edition

Components

Several accounts are typically found in the investing cash flow section (Exhibit 7.14):

• Capital expenditures: organic expansion of fixed assets (cash outflow)

• Acquisitions: purchased fixed and intangible assets (cash outflow)

• Asset sales: disposal of fixed and intangible assets (cash inflow)

• Purchases of investments: acquisition of debt/equity securities (cash outflow)

• Sales of investments: disposal of debt/equity securities (cash inflow)

4. Cash Flow from Investing Activities

Exercise Q1: Cash flow from investing activities tracks the movement of cash associated with: Capital expenditures Asset sales Issuance of debt Acquisitions of fixed assets

5. Cash Flow from Investing Activities

Exercise Q1: Which of the following investing activities constitute(s) cash inflow for a company? Capital expenditures Asset sales Acquisitions of fixed assets Sales of investments

6. Cash Flow from ...