Coming Soon
Subscription Marketplace - Buy and sell subscription products and services
736 views
in Articles by
Another portion of the statement of cash flows reports the investment that the company took during the reporting year. New investments are signs of growing or upgrading the production and distribution facilities and capacity of the business. Disposing of long-term assets or divesting itself of a major part of its business can be good or bad news, depending on what's driving those activities. A business generally disposes of some of its fixed assets every year because they reached the end of their useful lives and will not be used any longer. These fixed assets are disposed of or sold or traded in on new fixed assets. The value of a fixed asset at the end of its useful life is called its salvage value. The proceeds from selling fixed assets are reported as a source of cash in the investing activities section of the statement of cash flows. Usually these are very small amounts.

Like individuals, companies at times have to finance its acquisitions when its internal cash flow isn't enough to finance business growth. financing refers to a business raising capital from debt and quity sources, by borrowing money from banks and other sources willing to loan money to the business and by its owners putting additional money in the business. The term also includes the other side, making payments on debt and returning capital to owners. it includes cash distributions by the business from profit to its owners.

Most business borrow money for both short terms and long terms. Most cash flow statements report only the net increase or decrease in short-term debt, not the total amounts borrowed and total payments on the debt. When reporting long-term debt, however, both the total amounts and the repayments on long-term debt during a year are generally reported in the statement of cash flows. These are reported as gross figures, rather than net.

Please log in or register to reply to this topic.

Related topics

0 replies 677 views
posted in Articles by VoyageHooper
0 replies 679 views
posted in Articles by Falconjurer
0 replies 643 views
posted in Articles by Emufasa
0 replies 702 views
posted in Articles by PositiveVoid
0 replies 637 views
posted in Articles by OpinionOwl
0 replies 678 views
posted in Articles by HarshThunder
0 replies 525 views
posted in Articles by Scorpeon
0 replies 988 views
posted in Articles by Cybora
0 replies 554 views
posted in Articles by VirtualAssassin
0 replies 551 views
posted in Articles by Robottom
0 replies 542 views
posted in Articles by Catnip
0 replies 3,413 views
posted in Articles by Octopixy
0 replies 909 views
posted in Articles by HairyMagpie
0 replies 906 views
posted in Articles by ShowDolphin
0 replies 682 views
posted in Articles by GrizzlyFlash
0 replies 711 views
posted in Articles by BeautifulWolf
0 replies 883 views
posted in Articles by FrighteningTwinkles
0 replies 739 views
posted in Articles by Wallaby
0 replies 686 views
posted in Articles by Celestiger
0 replies 721 views
posted in Articles by TrustyKitty
0 replies 685 views
posted in Articles by SleepyFledgling
0 replies 646 views
posted in Articles by SwiftHeroine
0 replies 655 views
posted in Articles by Sumogre
0 replies 678 views
posted in Articles by Mosquiche
0 replies 640 views
posted in Articles by Tabooccaneer
0 replies 864 views
posted in Articles by Sassassin
0 replies 796 views
posted in Articles by GamerAlpaca
0 replies 732 views
posted in Articles by MysteryWasp
0 replies 623 views
posted in Articles by GreedySmile
0 replies 683 views
posted in Articles by BumblingBee
0 replies 587 views
posted in Articles by Herogue
0 replies 607 views
posted in Articles by Dingopher
0 replies 505 views
posted in Articles by Butcherry
0 replies 546 views
posted in Articles by PlaySeal
0 replies 521 views
posted in Articles by ForceSoldier
0 replies 517 views
posted in Articles by UncleRhino
0 replies 611 views
posted in Articles by HairySeahorse
0 replies 900 views
posted in Articles by MagicalCyborg
0 replies 627 views
posted in Articles by Knighthawk
0 replies 599 views
posted in Articles by Knighttime
0 replies 557 views
posted in Articles by Octopuppy
0 replies 522 views
posted in Articles by SilkPredator
0 replies 524 views
posted in Articles by nicejone
0 replies 565 views
posted in Articles by Finderpros
0 replies 665 views
posted in Articles by LovableStorm
Connect with us:
...