What is reported in the investing section of the cash flow statement?
The investing section includes purchase (capital expenditures) or sale of fixed assets. It would include loans made to other entities to collect interest income. Includes the purchase or sale of available-for-sale and held-to-maturity securities (excludes trading securities). Any acquisition or sale of a business unit would be included in the investing section.
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How to calculate free cash flow?
Free cash flow represents cash generated by the company through the income statement, but also needs to factor in changes in net working capital, capital expenditures, and other cash flow items. Unlevered free cash flow represents cash the company generates or losses prior to factoring in interest on debt, as well as state and federal […]
What are the three sections of the cash flow statement?
The three sections are operating, inventing, and financing. The phrase “Oops I forgot” is helpful to remember the three section. The “O” in oops represents operating, the “I” represents investing, and the “f” in forgot represents financing. The operating section of the statement of cash flows will represent the cash inflows and outflows from operating […]
What is reported in the financing section of the cash flow statement?
The financing section includes activities related to debt or equity activities. This would include issuing common stock, issuing preferred stock, treasury stock, dividend payments, issuing bonds, issuing notes, and payment of principal of debt.