Cash flow from investing activities

Cash flow from investing activities will include cash generated or utilized in the following:

• The sale or purchase of property, plant, and equipment (PPE): Purchase of PPE is straightforward and can be obtained from the additions in the fixed assets schedule. The sale of PPE would have been reflected in the accounts as profit or loss on the disposal of assets. This is arrived at by comparing the proceeds of the sale to the net book value (cost less accumulated depreciation) of the assets sold. The profit on disposal will be reversed from operating profit along with depreciation as not involving the movement of cash. The proceeds of sale is the cash element of the transaction and is calculated as profit on the sale of assets plus the net book value of assets sold.
• Sale or purchase of investments: Cash utilized in the purchase of investments will simply be an increase in investments after considering any sale. Cash generated from the sale...