Chapter 16, Problem 16QS

To determine

Cash Flow Statement:

Cash flow statement is a part of financial statement which reflects the cash inflows and outflows during the year. For the preparation of Cash-flow statement, all the activities have been divided among three parts: Operating Activities, Investing Activities and Financing Activities. Operating Activities are main activities of the business and for which the business is meant to be established. Investing activities are activities relating to activities of sale and purchase of fixed assets and long term investment. The Financing Activities are Activities relating to issue and repayment of stock, bonds, long term liabilities and also serving the cost related to such activities.

Cash-flows from financing activities:

The cash flows from financing activities includes such activities which are related to financing or repayment of long term funds like the borrowings taken from short term or long term loans or notes payable, repayments of such borrowings, issue of common stock or preferred stock capital and dividend paid, etc.

The Net cash provided from or used in financing activities.