Typical cash flows from investing activities included a purchase of asset or interest received from investing in other company or receipts from selling of assets etc.
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Dividend received is the amount received by company from investing in other companies and shows in cash flows from investing activities.
following items are included in cash flow statement1 - cash flow from operating activities2 - cash flow from investing activities3 - cash flow from financing activities.
Investing activities
Cash flows are classified with following three catagories:Cash flow from operating activitiescash flow from investing activitiescash flow from financing activities
a) Cash flows from Operations. It also provides information on cash flows from investing activities and finance activities.
increase or decrease in investment is shown in cash flow from investing activities.
Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.
Purchase of fixed asset is shown under cash flows from investing activities as an outflow of cash because purchase of assets is an investing activity and it causes reduction of cash flow.
Cash at the end of the year
Cash flows from (used in) operating activities Cash receipts from customersCash paid to suppliers and employeesCash generated from operationsInterest paidIncome taxes paidNet cash flows from operating activitiesCash flows from (used in) investing activities Proceeds from the sale of equipmentDividends receivedNet cash flows from investing activitiesCash flows from (used in) financing activities Dividends paidNet cash flows used in financing activities.Net increase in cash and cash equivalentsCash and cash equivalents, beginning of yearCash and cash equivalents, end of year
1 - Cash flow from operating activities 2 - Cash flow from investing activities 3 - Cash flow from financing activities