![]() ![]() Cash Flows from Investing ActivitiesĬash flows from investing activities contains the sum total of the changes that a company experienced during the reporting period in investment gains or losses, as well as from any new investments in or sales of fixed assets. Cash Flows from Operating ActivitiesĬash flows from operating activities refer to the primary revenue-generating activities of an entity, such as cash received from the sale of goods or services, royalties on the use of company-owned intellectual property, commissions for sales on behalf of other entities, and cash paid to suppliers. The statement of cash flows is closely examined by financial statement users, since its detailed reporting of cash flows can yield insights into the financial health of a business. The statement of cash flows is part of the financial statements, of which the other two main statements are the income statement and balance sheet. The statement is comprised of three sections, in which are presented the cash flows that occurred during the reporting period relating to the following topics noted below. ![]()
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