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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