Cash Flows

Question 1

Cash Flows from Operating Activities

OUTFLOWS

Answer 1

To suppliers (Goods/Services)

To Employees (Payroll)

Interest

Income Taxes

Question 2

Cash Flows from Investing Activities

INFLOWS

Answer 2

Sale of long term assets

Collection of loan principal

Disposal of debt and equity securities (held to maturity or available for sale)

Sale of other productive assets

Question 3

Cash Flows from Investing Activities

OUTFLOWS

Answer 3

Purchase of long term assets

Lending (to others)

Investment in debt and equity securities (held to maturity and available for sale)

Purchase of other productive assets

Question 4

Cash Flows from Financing Activities

INFLOWS

Answer 4

Sale of (own) stock

Proceeds from borrowing (bonds, notes, etc.)

Question 5

Cash Flows from Financing Activities

OUTFLOWS

Answer 5

Repurchase (own) treasury stock

Paying back lenders (principal only)

Payment of dividends

Question 6

Cash Flows from Operating Activities

INFLOWS

Answer 6

From Customers

Dividends

Interest