Final answer:
Cash flows from investing activities typically include transactions for the purchase and sale of long-term assets and investment securities, such as equipment or buildings, with the purpose of growth through reinvesting profits. Investment income paid and cash used in mergers and acquisitions are also included in this section.
Step-by-step explanation:
In cash flows from investing activities, you would expect to find transactions related to the purchase and sale of long-term assets and investment securities. This could include the purchase of new equipment, buildings, or vehicles, which are meant to be used over a long period to generate revenue.
Likewise, it might involve the sale of these assets when they are no longer needed, or when a company is restructuring its operations.
When it comes to reinvesting, a company might use a portion of its profits to purchase these assets, which in turn can lead to growth and an increase in future cash flows.
Similarly, investment income paid such as dividends received from financial investments or proceeds from the sale of investments would also be reported in this section.
Finally, when a business acquires another company through mergers and acquisitions, the cash paid out would be categorized under investing activities.