Based on the following information, compute cash flows from investing activities. (Input the amount as positive value.) Cash collections from customers Sale of used equipment Depreciation expense Purchase of short-term investments $ 710 240 260 304 Cash used in investing activities

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Sale of short-term investments plus the purchase of secondhand equipment equals the cash generated by investing activities. Investing-related cash flow equals $7,100 minus $6,200.

The section includes a company's overall cash flow from investment-related operations. The acquisition of financial assets, mutual funds, stocks, etc., is an example of an investment activity.

Long-term investments known as capital investments involve assets with multiple-year useful lifetimes. Capital investments include things like building a new production facility and purchasing machinery and equipment. A technique for calculating the financial feasibility of a capital investment over its lifetime is capital budgeting.

Capital budgeting, in contrast to several other forms of investment analysis, places more emphasis on cash flows than profits. Instead of accounting the revenues and expenses resulting from the investment, capital budgeting focuses on identifying the cash inflows and cash outflows. For instance, because they are cash flow activities, non-expense items like loan principal payments are included in capital budgeting.

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