What are cash flow from Financial activities in accounting?

Finance ManagementAccountingAcademic Content

This part of statement focus on raise of capital and pay back to investors through capital markets. Financial activities include −

  • Repayment of equity.
  • Payment of dividends.
  • Issuance and repayment of debt.
  • Capital lease obligations.

If the statement shows the positive, that means, there is an increase in its assets. If the statement shows negative, then the company of its long term debts or dividends.

Formula

Cash flow from financing activities = cash inflow from issuing debt/equity – (Cash paid as dividends + repurchase of debt and equity)

Financial activities
Positive cash flowNegative cash flow
Issuing equity/stockStock repurchases
Borrowing debtDividends
Issuing debtsPaying down debt

raja
Published on 13-Aug-2020 10:51:46
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