Cash flows from investing and financing are prepared the same way under the direct and indirect methods for the statement of cash flows. To put it simply, if we RECEIVE CASH in the transaction we ADD the cash amount received and if we PAY CASH in the transaction we SUTRACT the cash amount paid.
Investing Activities
Investing activities would include any changes to long term assets including fixed assets (also called property, plant and equipment), long term investments in notes receivable, or stocks or bonds of other companies, and intangible assets (patents, trademarks, etc.). Where would we find this information? We would look on the balance sheet. If there was a change in any long term asset (increase or decrease during the year), we need to account for that item in the Investing section. For our purposes, we will use the balance sheet and any additional information provided to us.
When analyzing the investing section, a negative cash flow is not necessarily a bad thing -- you would need to look into the individual items of the investing section. We could have a negative cash flow if we purchased a new building for cash but this would be a good thing for our company and should not been determined to be bad since the cash flow from investing could be negative. Same if the reverse were true, what if we sold all of our long term assets and did not purchase any new assets -- would this be a good thing for our company since we have a positive cash flow or a signal that something is going very wrong?
Here is a video to explain both investing and financing and then we will look at financing:
Financing Activities
Financing activities would include any changes to long term liabilities (and short term notes payable from the bank) and equity accounts (common stock, paid in capital accounts, treasury stock, etc.). We would get most of the information from the balance sheet, but it may be necessary to use the Statement of Retained Earnings as well for any information on dividends. As with investing, if there has been a change in a long term liability or equity (increase or decrease during the year), we must account for the item in the Financing section of the statement of cash flows.
When analyzing the financing section, just like with investing, a negative cash flow is not necessarily a bad thing and a positive cash flow is not always a good thing. Once again, you need to look at the transactions themselves to help you decidehowthe positive or negative cash flow would affect the company.
To summarize our investing and financing sections, review this chart (remember, use the wording "provided" if positive cash flow and "used" if negative cash flow):
| Cash flows from Investing activities: |
| + cash received from sale of long term assets |
| - cash paid for purchase of new long term assets |
| Net cash provided (used) by Investing Activities |
|
| Cash flows from Financing activities: |
| + cash received from long term liabilities |
| - cash paid on long term liabilities |
| + cash received from issuing stock |
| - cash paid for dividends |
| - cash paid to purchase treasury stock |
| Net cash provided (used) by Financing Activities |
Non-cash investing and financing activities
What happens if we purchase a building by signing a mortgage with no cash down payment? Or if we convert bonds payable to common stock, how would we account for these transactions? These transactions do not involve cash but they are significant enough for investors to need to know. We will report them in a separate section at the bottom of the statement of cash flows. For example, assume a company did purchase a $100,000 building by paying $20,000 down in cash and signed a note for the balance of $80,000. This would be reported as follows (note, the $20,000 down payment would be including in the investing section of the statement of cash flows):
| Noncash investing and financing activities: |
| Purchased building for $100,000 by signing a note and a downpayment of $20,000 | $80,000 |
We will prepare a complete statement of cash flows in the next section.
Licenses and Attributions
CC licensed content, Shared previously
- Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
All rights reserved content
- Cash Flow Statement: Investing and Financing Activities. Authored by: Note Pirate. License: All Rights Reserved. License terms: Standard YouTube License
FAQs
Yes. If you're a Premier Member, you have full access to Textbook Solutions and Explanations. If you're a Basic (free) Member, you can upload your original study materials and documents to gain access to Textbook Solutions and Explanations.
Can professors see if you have a Course Hero account? ›
Course Hero does not notify your school because their services are confidential and they have no affiliation to any university. However, if your school uses Turnitin to check the originality of students' assignments, your tutor could detect if you copied a resource word-for-word from Course Hero.
How do I find my answers on Course Hero? ›
Near the top of each page, you should see a search bar that says Find Study Resources. Type any keywords and then press Enter. You will then be able to divide the search results by Course, Questions & Answer (Q&A), or Study Document.
What happens when you run out of questions on Course Hero? ›
If you've used all of your available Questions, you can use a credit or debit card to purchase additional Questions à la carte.
Will I get caught if I use Course Hero? ›
It provides a temptation to students who are looking for exam answers and want to cheat in class. You also can't track who is using Course Hero. Often, notes are posted anonymously, so the individual who posted them cannot be tracked down.
How do you Unblur Course Hero answers? ›
You can also use 'Ctrl + F' and search for keywords “obscured” or “hide” if you don't find the div tag right away. Then, right-click on the tag and select 'Edit Attribute' from the menu. Type 'none' for the new 'class' element and press the 'Enter' key. The blurred document from Course Hero should unblur.
How long do Course Hero answers take? ›
Most Questions receive explanations within 15 minutes of submission. If you have no available Questions, the Question will be charged to the credit card on file, once a tutor explanation has been posted.
How many answers can I unlock on Course Hero? ›
For every paid membership option, you'll get 30 Unlocks per month, starting on your subscription date. Your Unlocks will refresh every month from the original registration date, and unused Unlocks don't carry over.
Can I edit my answer in Course Hero? ›
All tutors are evaluated by Course Hero as an expert in their subject area. Answer: As a tutor, it is not possible delete question answered in course hero. You can only do so by contacting the course hero support.
How do you unlock Course Hero answers without paying? ›
Upload Documents. Course Hero is dedicated to connecting learners with valuable information and has a free unlocking system. After uploading original study documents, the platform grants you access to other materials for free. For every 10 uploads, Course Hero will reward you with five unlocks.
Log in to your account and hover over your profile picture to and go to your Account Settings. Click the Stop Recurring Membership button. Follow the instructions on the page to confirm cancellation.
Can you get more questions on Course Hero? ›
You may also buy additional Questions for $3 a piece. In addition, each Premier Membership comes with a designated number of Questions, depending on the membership package.
How do I remove blurred text from inspect? ›
Right-click the pop-up or blurry text, and choose Inspect to open Chrome's developer tools. Look around in the code that's now visible at the bottom of the screen for a reference to something about the paywall or blocked text. It might say overlay or something similar. Right-click the code, and select Delete element.
Does Course Hero ++ work? ›
Course Hero is a legitimate American education website that was founded in 2006 and is based out of Redwood City, California. It provides an online platform for over 20 million students to ask questions about course content as well as access course-specific study resources such as tests, essays, and revision guides.
How to bypass Course Hero 2022? ›
What Are The Best Methods to unblur Course Hero Ans in 2022?
- Method 1: Upload Documents.
- Method 2: Get Premium Subscription.
- Method 3: Use Inspect Element.
- Method 4: Get Free Unlocks by Referring a Friend.
- Method 5: Review Other People's Work.
I uploaded the required number of documents, why don't I have Unlocks? Our system can take up to 24 hours for documents to be processed and credited to your Course Hero account. If your documents have not been processed within this time frame, please contact our Support Team using the Contact Us button below.
How many times can you apply in Course Hero? ›
Please note that only one tutor application is allowed per person and only one tutor account is allowed per person.
Why did Course Hero charge me $119? ›
If you were charged for a membership, that means that at some point you upgraded your account to a Premier Membership. At that time, you were automatically enrolled in our subscription plan, which auto-renews unless the recurring payment is canceled.
How many unlocks do I have left Course Hero? ›
Your Unlock and Question balances will be displayed on the bottom left of the navigation panel in your account dashboard. If you earned Unlocks, your available earned Unlock balance will be viewable on your My Rewards dashboard under Available Earned Unlocks.
How many questions can I unlock on Course Hero? ›
Free members can seek help from our online tutors at an a la carte price. Premier members may unlock up to 30 documents and/or User Questions, as well as access all Textbook Solutions and Explanations in Course Hero's library and receive up to 40 Questions.
If you want to unblur Course Hero, you can do so by uploading your own documents. This way, you can help contribute to the Course Hero community and access unblurred content. Not only will this save you money, but it will also help other students struggling with the same material.
Is there a site better than Course Hero? ›
We have compiled a list of solutions that reviewers voted as the best overall alternatives and competitors to Course Hero, including Quizlet, Studypool, StudyBlue, and Kahoot!.
Does deleting Course Hero cancel subscription? ›
Please note: If you currently have an active paid membership and choose to delete your account, your premier subscription will terminate immediately. No refunds will be issued if you delete your account before the end of your subscription term (see section 4 of our Terms of Use).
What is the best time to get Questions in Course Hero? ›
If you are just asking in general for the Course Hero platform, you can ask a question any time during the day. Tutors are online at all hours of the day every day of the week. I would suggest asking a question with at least a day or two lead time before an assignment is due.
How do I unlock Course Hero unlocks for free? ›
You can earn Course Hero Unlocks for free by uploading your original study materials and documents to help others learn. When you upload your material, you'll receive 5 Unlocks for every 10 successful uploads. Any Unlocks you earn are good for 30 days and can be used to view and download full Course Hero documents.
How do I unlock Unlock Course Hero for free? ›
Coursehero provides its users with the facility to earn Coursehero unlock document for free. This can be done by uploading your useful and quality documents on Coursehero. By doing this you may get a reward of getting one Coursehero free unlock document. This process requires quality work.
How do you Unblur Course Hero hack? ›
Upload Documents
- Head to the Course Hero web page and log into your free account.
- Find the blurred document you want to access and tap to open it.
- Click on the pink “View Full Document” button.
- Press the “Continue to Access” button.
- Course Hero will now display the subscription options that unlock the file.
What Are The Best Methods to unblur Course Hero Ans in 2022?
- Method 1: Upload Documents.
- Method 2: Get Premium Subscription.
- Method 3: Use Inspect Element.
- Method 4: Get Free Unlocks by Referring a Friend.
- Method 5: Review Other People's Work.
I uploaded the required number of documents, why don't I have Unlocks? Our system can take up to 24 hours for documents to be processed and credited to your Course Hero account. If your documents have not been processed within this time frame, please contact our Support Team using the Contact Us button below.
