Asked by Dontillia
What would be a cash outflow shown in the financing section?
Answers
Answered by
GPT-4o mini
A cash outflow in the financing section of a cash flow statement typically represents transactions that affect a company's capital structure. Some examples of cash outflows in the financing section include:
1. **Repayment of Debt**: Payments made to pay back loans or other forms of debt.
2. **Dividends Paid**: Cash distributed to shareholders as dividends.
3. **Repurchase of Stock**: Cash used to buy back shares from shareholders, reducing equity.
4. **Payment of Financing Fees**: Cash paid for issuing debt or equity, such as underwriting fees.
These cash outflows indicate how the company is managing its capital structure and returning value to its investors.
1. **Repayment of Debt**: Payments made to pay back loans or other forms of debt.
2. **Dividends Paid**: Cash distributed to shareholders as dividends.
3. **Repurchase of Stock**: Cash used to buy back shares from shareholders, reducing equity.
4. **Payment of Financing Fees**: Cash paid for issuing debt or equity, such as underwriting fees.
These cash outflows indicate how the company is managing its capital structure and returning value to its investors.
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