How do you do the Direct Cash Flow in Financing Activities?

Cash flow statement financing activities

  • For operating activities is cash receipts from customers and cash paid to suppliers correct? For operating activities are cash paid to purchase equipment, equipment and buildings correct? For financing activities are cash dividends paid and cash received from issuing bonds payable correct under each category?

  • Answer:

    A Cash flow statement is a financial statement indicating modification in balance sheet accounts and income affect cash and cash equivalents. It does not operate activities is cash receipts from customers and cash paid to suppliers. Basically a cash flow statement is a financial report showing a business cash flow. For more information, visit http://en.wikipedia.org/wiki/Cash_flow_statement#Purpose.

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