The investing activities are considered as another integral part of the cash flow statement, as it marks out the money which is being received through the help of long-term assets. It is worth mentioning that after collecting the money, investing activities might as well exhibit a positive trend in the cash-flow statement, whereas it also calculates the amount of sales that have given a lucrative amount of revenue to the company
Quite interestingly, it indicates the change in cash position of the company either by gains or losses to cope with its overall reports. Furthermore, it highlights the word ‘investment’ which is linked with financial markets as well as the operating subsidiaries along with the total amount of funds spend over fixed-assets i.e. plant and equipment.
Investing activities are evaluate whenever there’s a change in a company’s long-term assets and are reported in a different section. The example highlights major factors that are associated with the long-term investments, especially the equipment which is mandatory for the business to remain operational. It also includes the presence of buildings and plants.
Moreover, after the purchase is made, the financial statement shows a negative trend regarding this investment, because this reduces the cash available in the corporation.
Even the sales associated with the long-term investments are recorded under the label of ‘investing activities’ along with the amount being collected through the same sources. It would be appropriate to state that receiving the cash will mark a positive trend whereas making investments will replenish the cash amount, resulting in a downward slopping.