Final answer:
Cash flows from investing activities include both outflows and inflows related to the acquisition and disposal of long-term assets such as equipment and property.
Step-by-step explanation:
Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets. Negative cash flow from investing activities might not be a bad sign if management is investing in the long-term health of the company. The cash flows from investing activities are both outflows and inflows of cash caused by the acquisition and disposal of long-term assets.
Investing activities can include purchasing or selling equipment, property, or securities of other companies. This section of the cash flow statement reflects a company's investment gains and expenditures, revealing how the company allocates its financial resources to maintain or grow its operations. It's important to understand that cash flows related to purchasing assets usually result in cash outflows, as the company is spending money. On the other hand, cash coming in from selling assets represents cash inflows to the business.