Cash flow statement

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A D - Loving Life (Querist)
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02 January 2009 Is purchase of foxed assets deducted & sale of fixed assets added in cash flow statement in investing activities?
If yes then why?

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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03 January 2009 Purchasing of any asset means a Investment, that everyone should know.
In cash flow statement, every inflow of cash means addition and outflow means deletion.
By purchasing we have to expend money, that is outflow of funds, thats why we have to deduce it from cash flow statement. Likewise we should add if its a sale.

**DM