![]() Therefore, extending credit to a customer (accounts receivable) is an investing activity, but it only appears on the cash flow statement when the customer pays off their debt. ![]() It is important to remember that, as with all cash flows, an investing activity only appears on the cash flow statement if there is an immediate exchange of cash. Cash flow from investing activities (CFI) refers to monies linked to long-term investments. Cash inflow resulting dividends paid on stock owned in another company. The cash flow statement gives information on a companys cash receipts and payments during a specified period of time.Cash outflow from the acquisition of another company. Key Takeaways Cash flow from financing activities is a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company.Future transactions can still affect the company’s cash flow forecasting and long-term financial performance. Cash outflow from the purchase of an asset (land, building, equipment, etc.). Cash flow statements only cover monies entering and departing a company over a certain period.Some examples of investment activity from the company's perspective would include: ![]() Therefore, paying out a dividend is a financing activity. The investing activity was undertaken by the shareholder. cash flows which classifies cash flows during the period from operating, investing and financing activities. However, this cash flow is not representative of an investing activity on the part of the company. A dividend is often thought of as a payment to those who invested in the company by buying its stock. ![]() For example, a company may decide to pay out a dividend. It is important to note that investing activity does not concern cash from outside investors, such as bondholders or shareholders. At some interval, whether it is monthly, quarterly, semi-annually. Cash Flow Statement: Example of cash flow statement (indirect method) You can think of cash flow investing the same way you think about dividends with stocks. ![]()
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