Calculate cash flow from investing activities.
Understand the Problem
The question is asking for the calculation of cash flow from investing activities, which typically includes cash transactions for the purchase and sale of physical and financial investments. This could involve analyzing cash inflows and outflows from activities such as acquiring new fixed assets, selling assets, making investments, or receiving dividends from investments.
Answer
CapEx/purchase of non-current assets + marketable securities + business acquisitions – divestitures (sale of investments)
The final answer is CapEx/purchase of non-current assets + marketable securities + business acquisitions – divestitures (sale of investments)
Answer for screen readers
The final answer is CapEx/purchase of non-current assets + marketable securities + business acquisitions – divestitures (sale of investments)
More Information
Cash flow from investing activities provides insights into a company's investment in long-term assets and other investments like securities. Understanding it can help assess a company’s growth strategy.
Tips
A common mistake is not considering all components such as sale of investments or securities, which can impact the cash flow.
Sources
- The web page with info on - Example Source - highradius.com
- Cash Flow From Investing Activities - Corporate Finance Institute - corporatefinanceinstitute.com
- Cash Flow from Investing (CFI) | Format + Examples - Wall Street Prep - wallstreetprep.com
