busterbluth

recall what an investing cash flow is:

What Does Cash Flow From Investing Activities Mean?
An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and <B> changes resulting from amounts spent on investments in capital assets such as plant and equipment <B>.

the principal amount spent is a cash flow towards owning the PP & E item in question, and these notes I made were based on CFA EOC solutions, so I still think it's and investing CF, but definitely will verify when I get home to be sure.

as for the second point, I've never heard of that in my life or seen any mention of that in the CFA readings, but maybe someone else on this forum can vouch for you? i doubt it though, that sounds very strange



Edited 2 time(s). Last edit at Thursday, March 17, 2011 at 10:08AM by magicskyfairy.