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Cash flow from operations: The first section is widely regarded as the most important section of the cash flow statement. This section shows whether the company was able to generate cash from its operating activities. Cash flow from investing activities:it focuses on the flow of cash in and out of the company as a result of changes in the company's long-term assets. Generally, cash flow from investing activities will be negative as the company replaces old equipment and as it carries out its capital expenditure program. In a few cases, cash flow from investing activities will be positive as the company experience significant cash inflow from the sale of fixed assets and other investing activities. Cash flow from financing activities: A company will from time to time need to generate external financing to expand its business, build new factories, launch a national marketing campaign etc. The cash for such major activities is usually not forthcoming from earnings and is usually financed by either the sale of debt or the issuing of equity. Cash flow from Financing activities will include this and other similar cash inflows. Cash outflow in this section includes debt payments 6/8/12 (principal), stock repurchase etc.
judgments on the amount, timing and degree of certainty of future cash flows.
therefore do not provide complete information for assessing future cash flows.
*Cash flow is necessary for survival in the short term, but in order
to survive in the long term a business must be profitable. It is often necessary to sacrifice cash flow in the short term in order to generate profits in the long term
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