Concept Of Cash Flow From Financing Activities And Its Determination

Financing activities are concerned with cash collection by issuing shares and debentures, raising long-term loan and so on. It also involves cash outflows in terms of redemption of debentures and preference shares, repurchase of shares, repayment of long-term loan and payment of cash dividend.The specimen showing the determination of cash flow from financing activities are as follows.

Particulars...............................................................Amount

Issue of equity shares............................................................xxx
Increase in share premium...................................................xxx
Issue of preference share.......................................................xxx
Issue of debentures.................................................................xxx
Long-term loan obtained........................................................xxx
Repurchase of shares..............................................................(xxx)
Redemption of preference share...........................................(xxx)
Redemption of debentures.....................................................(xxx)
Repayment of long-term loan................................................(xxx)
Payment of cash dividend........................................................(xxx)

Cash from financing activities......................................(xxx)