Activities of Statement of cash flows
The statement of cash flows is divided into three separate activities: operating activities, investing activities, and financing activities. These activities, which are explained in the following list, are the activities from which a firm obtains and uses cash:
- Operating activities include net income (or loss), depreciation, and changes in current assets and current liabilities other than cash and short-term debt. A firm’s net income taken from its income statement is the first line on the corresponding period’s cash flow statement.
- Investing activities include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.
- Financing activities include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.
Category: Entrepreneurship & Small Business
Share it: Cite
Previous: ← Statement of cash flows
Next: Forecasts →
More from this Section
- Multidomestic Strategy
Multidomestic strategy is an international expansion strategy in which firms compete for ...
Advertising refers to any paid form of non personal presentation and promotion of ideas, ...
- Constant ratio method of forecasting
Constant ratio method of forecasting refers to a forecasting approach using the percent-of-sales ...
- Equity Financing/ Funding
Equity financing (or funding) is a most common alternative for raising money that means ...
- Common Stock
Common stock refers to the stock that is issued more broadly than preferred stock and ...