Final answer:
Cash flows from investing activities indicate a company's spending on long-term assets such as property and equipment, reflecting reinvestment and potential growth.
Step-by-step explanation:
The cash flows from (used in) investing activities on the statement of cash flows report the cash activity from the buying and selling of productive resources such as land, buildings, and equipment. Investing activities involve the long-term use of cash, such as buying new machinery, constructing buildings, or investing in research and development. These activities signify a company's reinvestment in its business infrastructure potentially leading to future growth. Companies raise the necessary financial capital for such investments through methods like borrowing, selling stock, or using saved profits. The cash flow statement helps investors understand how a company's investments are financed and how these investments might generate future income.