Cash flows from investing activities is a line item in the statement of cash flows, which is one of the documents comprising a company's financial statements. It is particularly important in capital-heavy industries, such as manufacturing, that require large investments in fixed assets. The amount of cash used by investing activities in 2003, 2002 and 2001 was relatively consistent among the years due to similar levels of capital spending, including acquisitions. They are capital assets and are purchased to maintain or increase the production or trading efficiencies of the business. During the year, it sold one of its old plants for $6,400 and purchased a tract of land for $1,500. The plant was purchased several years ago for $10,000 and was being depreciated using straight line method. It usually involves sale and purchase of long term investments in debt and equity instruments of other companies. Examples of debt instruments (also known as debt securities) are government bonds, corporate bonds and mortgages. The holder of such instruments is entitled to receive a periodic interest income. The repayment of such loans and advances is also investing activity with the exception of any interest received thereon. Big Brand company purchased a patent for $500,000 on 1st January, 2013. The patent is to be amortized over its economic useful life of 5 years using straight line method. Annual report is the best estimate for the period's Capex. I'm not sure why you think it's a bad estimate, even for a large company. Expenditures include parts of starting or acquiring a new business, but mainly as the cost of new investments of property, plant and equipment. The purchase of a new business itself is not a capital expenditure. But the supporting capital investments required for that business are capital expenditures. December 31, 2006. The primary expenditures in 2007 were the additional purchase of shares in Polmos Bialystok for $132.8 million, and investment in the new rectification facilities for $16 million.