Cash Flows from Investing Activities and Example

If you want to observe benefits of cash flow sheets from investing activities, download templates added here to assist you. Cash flow from financing activities is also required to analyze cash earned financing activities. These sheets are prepared on the basis of cash inflow and cash outflow of the company in a specific time period.

You can easily observe the products and services offered by your company, which are earning good profit amount, as well as products and operations which are giving cost to your company rather than profit. As a senior manager, you can avoid operations and activities, which are going in loss to prevent negative profit ability of the company.

Cash flows from investing activities

Some of the investing activities includes under cash flow statement are described here: Capital expenditures: this section of the flow sheet results in cash out flow and bigger amount as you are investing on property and equipments, which are costing your company a big amount.

Cash Flow Investing Activities

  • Acquisition of franchise: if your company is acquitting any restaurant net cash required must be mentioned in the sheet.
  • Proceeds from sale of property: this includes proceeds from sale of property, equipment and insurance.
  • Net cash utilized in investing activities during different years are therefore calculated.
  • Plant and equipments are also bought, if they are required for new project.

Cash Flows From Investing Activities Ideas

  • Capital assets
  • Capital expenditures
  • Disposal of property results in positive cash inflow
  • Balance sheets

Although cash inflow is beneficial for the company as it shows revenue and profit, however cash outflow shows enough money in the company accounts, which can be paid out to suppliers and vendors. Some financing activities results in cash outflow while others ensure cash inflow in the company.

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