Investing Activities:
Investing activities generally include those transactions and events that affect long-term assets, namely, purchase and sale of both fixed assets and business interests. Clearly, sales transactions would generate cash inflows and purchase transactions would generate cash outflows. Generally speaking, transactions that involve acquiring or disposing of non-current assets are classified as investing activities. These transactions include acquiring or selling property, plant and equipment; acquiring or selling securities held for long-term investment, such as bond and stocks of other companies and lending money to another entity and the subsequent collection of the loan.
Changes in non-current assets those are not included in net income.
Cash inflows:
From collecting principal on loans
From selling long-term productive assets
From selling available for sale securities
From selling (discounting) of notes
From selling held to maturity securities
Cash Outflows:
To purchase long term productive assets
To purchase available for sale securities
To make loans to others
To purchase held to maturity securities
