EBIT + Depreciation = Cash from operating activities

Note: EBIT = Earnings before interest and taxes

Cash flows from investing activities

December 12, 2018
Cash flows from investing activities is a line item in the statement of cash flows, which is one
of the documents comprising a company's financial statements. This line item contains the sum
total of the changes that a company experienced during a designated reporting period in
investment gains or losses, as well as from any new investments in or sales of fixed assets.
Items that may be included in the investing activities line item include the following:

 Purchase of fixed assets (negative cash flow)

 Sale of fixed assets (positive cash flow)

 Purchase of investment instruments, such as stocks and bonds (negative cash flow)

 Sale of investment instruments, such as stocks and bonds (positive cash flow)

 Lending of money (negative cash flow)

 Collection of loans (positive cash flow)

 Proceeds of insurance settlements related to damaged fixed assets (positive cash flow)

Cash flows from financing activities

March 10, 2019
Cash flows from financing activities is a line item in the statement of cash flows. This statement
is one of the documents comprising a company's financial statements. The line item contains the
sum total of the changes that a company experienced during a designated reporting period that
were caused by transactions with owners or lenders to either:

 Provide long-term funds to the company; or

 Return those funds to the owners or lenders.

 If the company is a not-for-profit, then you would also include in this line item all contributions
from donors where the funds are to be used only for long-term purposes.

Items that may be included in the financing activities line item are:

 Sale of stock (positive cash flow)

 Repurchase of company stock (negative cash flow)

 Issuance of debt, such as bonds (positive cash flow)

 Repayment of debt (negative cash flow)

 Payment of dividends (negative cash flow)

 Donor contributions restricted to long-term use (positive cash flow)