A) Cash purchases of equipment
B) Cash purchases of bonds issued by another company
C) Cash received as repayment for bonds loaned
D) Cash purchase of treasury stock
Financing activities are those activities which relates to finance in company like new shares issuance or bonds issuance etc.
Cash transfer
cash deposit
inward deposits
ledger fees
Cheque enchatment
Purchase of treasury stock
land purchases is part of cash flow from financing activities as a reduction in cash.
Cash flow statment is required to find out how much cash inflow and outflow is from operating, financing and investing activities company has earned and this information is not provided by any other financial statment.
Cash flows from (used in) operating activities Cash receipts from customersCash paid to suppliers and employeesCash generated from operationsInterest paidIncome taxes paidNet cash flows from operating activitiesCash flows from (used in) investing activities Proceeds from the sale of equipmentDividends receivedNet cash flows from investing activitiesCash flows from (used in) financing activities Dividends paidNet cash flows used in financing activities.Net increase in cash and cash equivalentsCash and cash equivalents, beginning of yearCash and cash equivalents, end of year
Operating activities
following items are included in cash flow statement1 - cash flow from operating activities2 - cash flow from investing activities3 - cash flow from financing activities.
Negative cash flows from financing activities means that the firm is paying out more money to investor (in the form of debt principal repayment, interest payment, dividends and share repurchases) than it is raising from investors. Usually, negative cash flows from financing activities are associated with mature companies generating more than enough cash from operations to fund future activities. It is not necessarily bad news. Conversely, early-stages firms rapidly growing firms and those in financial distress typically have positive cash flows from financing activities.
Paid in capital is shown under cash flows from financing activities in cash flow statement.
Dividend declared and paid is shown under cash flows from financing activities in cash flow statment as it is not primary operating activity of business.
If stock dividend is received then it will be shown under cash flows from investing activities while if stock dividend is paid then it is shown under cash flow from financing activities.
Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.
Cash at the end of the year
Common stock issued for cash will be appear under cash flows from financing activities in indirect method of cash flow statement.