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The three-step analysis to determine cash provided or used by investing activities includes: identifying changes in investing-related accounts, reporting the cash flow effects and explaining the changes using T-accounts and reconstructed entries.
What do you mean by Cash Flow statement?
A cash flow statement is a financial statement that exhibits how modifications in the accounts of the balance sheet and income impact cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.
In analysing cash flows in a business there are three types of cash flow: from operating activities, from investing activities, and from financing activities.
Cash flow from investing activities involves cash used for various investments over a particular period. This can include purchase of property, equipment, acquisition of other businesses, and investment in marketable securities.
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