What are some examples of financing activities on the cash flow statement?
Financing activities reported on the statement of cash flows (SCF) involve changes to the long-term liabilities and stockholders’ equity (sections of the balance sheet) during the period shown in the heading of SCF.
Sources of cash provided by financing activities include the issuance of bonds payable, the issuance of common stock, issuance of preferred stock, the sale of treasury stock, borrowing money on a long-term basis from a bank or other lenders, and other increases in long-term liabilities and stockholders’ equity.
Uses of cash reported in the financing activities section of SCF include the retirement of bonds payable, the purchase of a company’s own stock, repayment of long-term bank loans, the declaration and payment of dividends, and other decreases in long-term liabilities and stockholders’ equity.
Learn more about the Cash Flow Statement.
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