Cash Flows-Investing Activities Typical cash inflows Typical cash outflows Sales of fixed assets Purchase of fixed and other long-term assets and other long- investments term investments Sale of marketable Purchase of securities and marketable securities investments and investments c14-16
C14 - 16 Cash Flows – Investing Activities Typical cash inflows Typical cash outflows Sales of fixed assets and other long-term investments Sale of marketable securities and investments Purchase of fixed assets and other longterm investments Purchase of marketable securities and investments
Cash Flows- Financing Activities Typical cash inflows Typical cash outflows What are some of the typical cash inflows from financing activities? c14-17
C14 - 17 Cash Flows – Financing Activities Typical cash inflows Typical cash outflows What are some of the typical cash inflows from financing activities?
Cash Flows- Financing Activities Typical cash inflows Typical cash outflows Sales(issuance) of stock What are some of the typical Sale(issuance) of cash outflows bonds and other money market debt from financing activities? Borrowing from banks and other lending institutions c14-18
C14 - 18 Cash Flows – Financing Activities Typical cash inflows Typical cash outflows Sales (issuance) of stock Sale (issuance) of bonds and other money market debt Borrowing from banks and other lending institutions What are some of the typical cash outflows from financing activities?
Cash Flows- Financing Activities Typical cash inflows Typical cash outflows Sales(issuance) Purchase of of stock treasury stock Sale(issuance) of Repayment and bonds and other redemption of debt money market debt (bonds, notes, other) Borrowing from banks Ind other lending Payment of cash dividends institutions c14-19
C14 - 19 Cash Flows – Financing Activities Typical cash inflows Typical cash outflows Sales (issuance) of stock Sale (issuance) of bonds and other money market debt Purchase of treasury stock Repayment and redemption of debt (bonds, notes, other) Payment of cash dividends Borrowing from banks and other lending institutions
Statement of cash Flows The statement of cash flows is invaluable in assessing the capacity of a firm to achieve goals such as: 1. Generate cash flow from operations 2. Maintain and expand operating capacity. 3. Pay dividends 4. Pay debts, including interest, when due. 5. Generate future profits The primary attention is the flow of cash rather than net income c14-20
C14 - 20 Statement of Cash Flows 1. Generate cash flow from operations. 2. Maintain and expand operating capacity. 3. Pay dividends. 4. Pay debts, including interest, when due. 5. Generate future profits. The primary attention is the flow of cash rather than net income. The statement of cash flows is invaluable in assessing the capacity of a firm to achieve goals such as: