To effectively evaluate cash flows,we separately analyze investing,financing,and operating activities.

Investing Activities

Part of a company's cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.

Financing Activities

Transactions involving external sources of funding for a company, including debt, equity, and dividend payments.

Operating Activities

These are the core activities that a business performs to generate revenue, such as production, distribution, marketing, and sales.