Unformatted text preview: Operating activities The first section is operating activities This section tells the reader whether or not the company generated cash from its day-to-day operations. These activities include cash collections from customers, payments to employees and suppliers, tax payments, the receipt of interest and dividends and interest paid. There are two acceptable methods of reporting operating activities. Each method is discussed under the topic “Preparing the Statement of Cash Flows.” Investing activities The second section is investing activities , which reflects how the company is using cash to grow/maintain its business. This section reports the activity in long-term asset accounts, such as land, buildings, equipment, intangible assets, and investments (excluding those classified as cash equivalents). If a company has collections from long-term notes receivable, they are reported as equivalents)....
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09