Investing Activities

The main purpose of investing activities is to acquire assets in order to facilitate and expedite the operations of the business.

The Investing Activities are those transactions which involve acquisition and disposal of assets other then inventory, which are necessary in the business operations.

Following are transactions which are considered investing activities and their effects in the cash flow:

A.  Transactions which increases cash (cash receipts)

1. Sale of plant assets
2. Sale of non-trading securities
3. Sale of business segment
4. Collection of principal in loans

B.  Transactions which decreases cash (cash disbursements)

1. Purchase of plant assets
2. Purchase of non-trading securities
3. Making loans to other entities