Frances

CASH FLOW FROM INVESTING ACTIVITIES:
An accounting of funds related to the company's investments, reported on the cash flow statement of a company's annual report. This number shows how much money the company has received (or lost) from its investing activities. It includes money that the company has made (or lost) by investing its excess cash in different investments (stocks, bonds, etc), moneythe company has made (or lost) from buying or selling subsidiaries, and all the money the company has spent on its physical property, such as plants and equipment.

Held-to-maturity securities: These are debt securities that are classified as held-to- maturity when the enterprise has the intent and ability to hold until the maturity date.
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Avaible for sale investment: should be carried attheir fair value at subsequent dates aswell. This gain maybe taken to to Income statement or directly to equity (either of the one).
Upon disposal of such (or part) of investments, we take the relative portion of 'gain previously charged to equity' back to the Income statement.

Investing activities include transactions and events involving the purchase and sale of securities (excluding cashequivalents), land, buildings, equipment, and other assets not generally held for resale. It also covers the making and collecting of loans. Investing activities are not classified as operating activities because they have an indirect relationship to the central, ongoing operation of your business (usually the sale of goods or services).

Cash receipts include:

Sale of plant assets

Sale of abusiness segment

Sale of investments in equity securities of other entities or debt securities (other than cash equivalents)

Collection of principal on loans made to other entities

Cash payments include:

Purchase of plant assets

Purchase of equity securities of other entities or debt securities (other than cash equivalents)

Loans to other entibies

CASH FLOW FROM FINANCINGACTIVITIES.

An accounting of funds related to the financing of the company which is reported on the cash flow statement of a company's annual report. This is where the company reports the money that it took in and paid out in order to finance its activities. In other words, it calculates how much money the company spent or received from its stocks and bonds. This includes any dividend payments thatthe company made to its shareholders, any money that it made by selling new shares of stock to the public, any money it spent buying back shares of its stock from the public, any money it borrowed, and any money it used to repay money it had previously borrowed.

All financing activities deal with the flow of cash to or from the business owners (equity financing) and creditors (debt financing).For example, cash proceeds from issuing capital stock or bonds would be classified under financing activities. Likewise, payments to repurchase stock (treasury stock) or to retire bonds and the payment of dividends are financing activities as well.

Cash receipts include:

Issuance of own stock

Borrowing (bonds, notes, mortgages, etc.)

Cash payments include:

Dividends to stockholdersRepaying principal amounts borrowed

Repurchasing business' own stock (treasury stock)

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities

The balance sheet reports Direct Delivery's liabilities as of the date noted in the heading of the balance sheet. Liabilities are obligations of the company; they are amounts owed to others as of the balance sheet date. Marilyn gives Joe someexamples of liabilities: the loan he received from his aunt (Notes Payable or Loan Payable), the interest on the loan he owes to his aunt (Interest Payable), the amount he owes to the supply store for items purchased on credit (Accounts Payable), the wages he owes an employee but hasn't yet paid to him (Wages Payable).

Another liability is money received in advance of actually earning the money....