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Financing activities include

Financing activities include

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Financing Activities form the third part of Cash Flow Statement. It includes funds received from or used with respect to Long term creditors or Equity Investors.It is an important indicator of liquidity of a company. Any expense borne in relation to these finances including Dividend paid, Interest paid on Debentures, Loans, Bonds.

Some Examples of Financing Activities include:

1)Issuance and Redemption of Bonds and other Debt

2)Issuance and Buy Back of Equity(Normal Equity and Differntial Rights)

3)Dividend Paid to Equity / Prefernce Investors

4)Interest Paid on Debt

5) Donor contributions restricted to long-term use

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