cash flow statment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 February 2010
how to analised operating,investing and financing activities after making cash flow statement.
Rahul Gupta
(Expert)
13 February 2010
Cash flows from operating activities are primarily derived from the principal revenue-producing activities of the enterprise. These type of activities directly affect the Incoem and Loss for the co.
cash flows from investing activities represent the extent to which expenditures
have been made for resources intended to generate future income and cash
flows. These represents activities affecting the investment or reduction in assets and liabilties which are used in generating income and revenues.
Financing activities represents cash flows by providers of funds (both capital and borrowings) to the enterprise.They contribute to the co. and invest in co.for the purchase of assets and liabities and generating revenue and income. These results in increase or decrease in capital and borrowing of the co.
cash flows from investing activities represent the extent to which expenditures
have been made for resources intended to generate future income and cash
flows. These represents activities affecting the investment or reduction in assets and liabilties which are used in generating income and revenues.
Financing activities represents cash flows by providers of funds (both capital and borrowings) to the enterprise.They contribute to the co. and invest in co.for the purchase of assets and liabities and generating revenue and income. These results in increase or decrease in capital and borrowing of the co.
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