83000
(56000)
250
500
(500)
(2450)
24800
Thus, generally, ICF consists of cash outflows and hence the total of this
section is usually negative. But say if you sell an asset, like say old
machinery /equipment/ building(plant), doesnt matter profit or loss, the
proceeds you receive will be treated as cash inflow under ICF for that
period.
Note that: Purchases of assets are put under two different categories:
additions or replacements.
Additions means purchases of additional assets in order to expand the
business.
Replacements do not involve expansion but rather refer to an asset
being purchased to replace an old or obsolete (no longer used) asset.
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to equipment/machinery
Replacement of equipment/machinery
Proceeds from sale of equipment
Net ICF
(2500)
(7000)
500
(9000)
3400
16000
(5400)
13000
24800
(9000)
13000
28000
4) The final section comprises of the net cash increase or decrease for
the period and the cash balance at the beginning and end of the period.
28000
2430
31,230
NOTE: This obtain figure for cash at the end of the current period will
be reported as Cash or bank account in the balance sheet under Current
Assets.