What Are Investment Activities In The Cash Flow Statement?

http://www.cashflowkungfu.com In the Cash Flow Statement, the Investment Activities section covers items like purchases of property, plant and equipment; investments in other businesses and joint ventures; as well as expenditure on developing intellectual property such as patents. When any of these assets are sold, it is the cash received from the sale that is reflected as Proceeds From Sale of Assets in the Cash Flow Statement. Whether a business makes a profit or loss on the sale is not relevant. The calculation of profit or loss on a sale of an asset is based on the carrying value of the asset on the balance sheet. ie the depreciated or amortized value. This video shows how the adjustments for Depreciation and Amortization are made so that the Cash Flow Statement reflects only the cash proceeds of the sale of these assets.

Comments

1. Where can I find articles related to this topic?
2. Hi, many thanks for the video, clear and to the point. Well done.
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4. Thank you. Glad you liked it.