Cash Flow Activities

Financing Activities

Activities that involve raising money from outside sources to fund operations.

Financing Activities

Borrowing monies from bank or public to fund operations. E.g., Generates liabilities (debt) – notes payable is monies borrowed from the bank, bonds payable is monies borrowed from public..

Financing Activities

Raising capital from public investors by issuing common stock (ownership) for cash. E.g., Payments of stockholder’s from profits are dividends.

Investing activities

Purchasing or selling long-term assets. E.g., Buildings, land, equipment.

Investing Activities

Purchasing or selling investments (stock or bonds) from other companies.

Operating activities

Selling goods or services to customers (revenues)

Operating activities

 Purchasing inventory

Operating Activities

Day-to-day actions taken by a company to produce and sell products or provide services.

Operating activities

Extending credit to customers to allow time to pay (accounts receivable)

Operating activities

Generating expenses to run day-to-day operations (rent expense, interest expense, insurance expense, marketing expense, wages expense).

Operating activities

Requesting credit or extended time to pay from suppliers for common purchases (accounts payable).

Operating activities

Generating other liabilities by delaying payment (income taxes payable, sales tax 

payable, wages payable, and interest payable)

Investing activities

use the cash raised through financing activities for the purchase of the resources a company needs.

Operating activities

the day-to-day actions taken by a company to produce and sell products or provide service.