Blog

What is Cash Flow From Financing Activities: Formula & Examples

This transaction increases cash flow from financing activities by $1 million. The annual interest payment of $50,000 will be recorded as an operating activity. By examining this section of the statement of cash flows, you can discern the actions being taken in regard to the capital structure of a business. A positive number indicates that cash has come into the company, boosting its asset levels. A negative figure indicates that the company has paid out capital such as by retiring...