Investing Activities
Cash Flows Related to Long-Term Assets
Investing activities involve acquiring and disposing of long-term assets and certain investments. These activities often indicate how a company is investing in future growth.
- Purchase of property, plant, and equipment.
- Sale of equipment.
- Purchase of long-term investments.
- Sale or maturity of investments.
- Loans made to others.
- Collection of principal on loans.
Note
Buying equipment is an investing cash outflow, while selling equipment is an investing cash inflow.
Summary
Investing activities report cash used for or generated from long-term assets and investments.