Cash Flow from Financing Activities

When we talk about Financing Activities, we talk about the liabilities and equity sides. As the name implies, this type of CF provides financing and, thus, changes in long-term liabilities and equity. Changes in equity include: issuing new shares, repurchasing shares, and paying dividends. Through this CF, we can observe how the company’s financial side moves in a given period. As with CF from the company’s investment activities, positive and negative CF will have a similar role.



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