This part of statement focus on raise of capital and pay back to investors through capital markets. Financial activities include −
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.
Cash flow from financing activities = cash inflow from issuing debt/equity – (Cash paid as dividends + repurchase of debt and equity)
|Positive cash flow||Negative cash flow|
|Issuing equity/stock||Stock repurchases|
|Issuing debts||Paying down debt|