Tony Bell's "Cash Flow Statement: Investing and Financing Sections"

Investing activities focus on the effect that changes in noncurrent assets have on cash. Noncurrent asset balances found on the balance sheet, coupled with other information (e.g., cash proceeds from sale of equipment) are used to perform this step. The financing activities section focuses on the effect changes in noncurrent liabilities and owners’ equity have on cash. Noncurrent liabilities and owners’ equity balances found on the balance sheet, coupled with other information (e.g., cash dividends paid) are used to perform this step.

In this video, Tony Bell explains how to prepare the investing and financing sections of a cash flow statement.

Last modified: Friday, December 16, 2016, 2:44 PM