Net Cash Flows from Financing Activities

 Net Cash Flows from Financing Activities

Net Cash Flow from Financing Activities

In this section the receipts from the issue of share (both equity and preference) and debentures, loans, notes, bonds and other short or long-term borrowing, as well as repayment of loans and redemption of preference share and debentures are included.

Dividend paid and interests paid (in case of non-financing enterprise) are also included in this section.

It is important to note that an increase in share due to a bonus issue will not be shown on the cash flow statement, since it is a capitalization of reserve and not an issue of cash.

When shares are issued at a premium, the cash flow statement will reflect the total cash generated by the issue (i.e., face value of share plus any premium).