Another part of the cash flows are reporting investment company during the year under review. New investments are signs of growing or an upgrade of the production and distribution facilities and capacity for the company. Disposals of fixed assets or a substantial part of its activities can be good or bad news, depending on which an undertaking carrying on an activity. A company in general have some of their assets each year since the end of their lifetime achievements and will no longer be used. These fixed assets are disposed of or sold or traded for new fixed assets. The value of an asset at the end of its useful life is called the residual value. Revenues from sales of fixed assets should be recognised as a source of cash in the investing activities of cash flows. These are usually very small quantities.
If individual companies sometimes to finance the acquisition with internal cash flow is not sufficient to finance growth. funding covers a company to raise capital debt and quity sources, to borrow money from banks and other sources who are willing to loan money to the business owners to earn extra money in your company. The term also covers the other part, to make payments on debt and return on capital for owners. This includes cash dividend of company profits to its owners.
Most companies borrow money for both short and long term. Most of the cash flow statement report only net increase or decrease in short-term debt, not the total amount borrowed and total payments on the debt. In the reporting of non-current liabilities, both the total amount and repayment of long-term debt in one year in General, however, reported in the statement of cash flows. These are reported as gross figures, instead of net.
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