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:
- Repayment of Debt: Payments made to pay back loans or other forms of debt.
- Dividends Paid: Cash distributed to shareholders as dividends.
- Repurchase of Stock: Cash used to buy back shares from shareholders, reducing equity.
- 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.