Cash Flow from Investing Activities

Cash Flow from Investing Activities

On a cash flow statement, an item summarizing the change to a company's cash flow from its investments in securities. Cash flow from investing activities includes capital gains and losses. It is important to the cash flow statement because investments in securities may result in negative cash flow even when the company is otherwise profitable. Depending on the liquidity of the company's portfolio, the negative cash flow may actually be positive.
References in periodicals archive ?
Statement of Cash Flows January 1, 2012 through september 30, 2012 Operating Activities: Net Income $20,000 Plus Expenses Not Using Cash: Depreciation $10,000 Plus Increases/(Decreases) in Current Liabilities: Trade Payables $20,000 Other Payables ($4,000) Accrued Liabilities $2,000 Less Decreases/(Increases) in Current Assets other Than Cash: Accounts Receivable ($30,000) Inventory ($10,000) CASH FLOW FROM OPERATIONS $8,000 Investing Activities: Plus Sale of Equipment $25,000 Less Purchase of Equipment ($150,000) CASH FLOW FROM INVESTING ACTIVITIES ($125,000) Financing Activities: Plus Borrowing $150,000 Minus Repayment of Debt ($50,000) Minus Dividends ($10,000) CASH FLOW FROM FINANCING ACTIVITIES $90,000 NET CHANGE IN CASH ($27,000) BEGINNING CASH $50,000 ENDING CASH $23,000
Note that any acquisition of capital assets that is not paid for with cash but instead is financed from external sources would not typically be accounted for under cash flow from investing activities nor would the financing be accounted for under cash flow from financing activities.
76 Consolidated Cash Flows Three months ended December 31, 2007 2006 Cash Flow from Operating Activities 4,914 39,831 Cash Flow from Investing Activities (103,035) (92,793) Cash Flow from Financing Activities 126,243 65,862 Cash and Cash Equivalents at Period End 334,003 315,294 Three months ended December 31, 2007 2006 Cash Flow from Operating Activities 139,532 160,601 Cash Flow from Investing Activities (280,912) (213,101) Cash Flow from Financing Activities 145,993 65,325 Cash and Cash Equivalents at Period End 334,003 315,294
With respect to financing and investing cash flows, Livnat and Zarowin (1990) reported that disaggregation of net cash flow from financing activities (NCFF) improved the association with stock returns, while disaggregation of net cash flow from investing activities (NCFI) yielded no improvement.
31, 2006 2005 2005 Cash Flow from Operating Activities 1,006 (1,885) (603) Cash Flow from Investing Activities (2,820) 282 (3,202) Cash Flow from Financing Activities (721) (542) (567) Cash and Cash Equivalents at Period End 31,468 34,627 32,557
Cash flow from investing activities declined to approximately EUR 48 million during the reporting period from EUR 89.
Investing activities Cash outflows for acquisitions of property, plant and equipment -472,381 -562,944 Cash outflows for acquisitions of intangible assets -987,613 -910,535 Cash inflows from disposals of property, plant and equipment 30,312 131,989 Cash outflows for acquisitions of financial investments 0 -154,690 Cash inflows from disposals of financial investments 284,577 64,401 Payment of additional cost for shares -2,843,000 -11,201,711 Impact of changes to the scope of consolidation(1) -4,054,008 Other cash flow from investing activities 0 Net cash flow from investing activities -8,042,113 -12,633,490 III.
8 million to cash flow from operating activities, from cash flow from investing activities included in the Company's second-quarter 2007 earnings release issued on August 1, 2007.
The company defines free cash flow as cash flow from operating activities less cash flow from investing activities.
The $21 million of cash received from the sale of interest rate derivatives in February will be recorded as cash flow from investing activities, and therefore is not included in the projected cash flow from operations.
TXU restated its quarterly financials as it determined that it had incorrectly understated cash flow from operations by $211 million and overstated cash flow from investing activities by the same amount.