Net Cash Flow from Investing Activities

 Net Cash Flow from Investing Activities

Net Cash Flow from Investing Activities

We have seen earlier that depreciation of fixed assets is adjusted to arrive the ‘Net Cash Flows from Operating Activities’ together with any profit or loss of fixed assets. It should be noted that the purchase of fixed assets and proceed from sale of fixed assets are shown under ‘Cash Flows from Investing Activities’. Similarly, sale and purchase of long-term investments are also shown under this heading.

The best way to calculate the figures need for the cash flow statement under the heading is to prepare respective ledger accounts with available information. All necessary figures will come out from the ledger accounts.