Quickly compare cash flow in current and existing year by downloading cash flows sheets, specifically designed for financial activities. This sheets are downloading by companies to observe if the specific activity results in negative cash flow or positive flow in the company. This sheet is different for various types of industries depending on the investments made their specifically. You can prepare manual sheets or use electronic media for the purpose.
Although the sheets are utilized to compare net income from financing activities over various years, but it is also important to monitor other financial activities of the company which are resulting in negative impact on the profit made during specific year or causing positive impact on the profit. In fact, they provide inner review about the activities and profit generated from them.
Cash Flows from Financing Activities
Basic sheet consisting of amount generated from financing activities includes following:
- Payments on finance lease obligations are shown under financing activities section.
- Stock: if you are selling out existing stock, it results in amount generated by company and it is shown up in this section.
- Dividend paid to non controlling interests and payments related to interests on debts are also added up.
- Other financing activities like purchasing raw material and purchasing bonds are added.
Financing activities ideas
- Outsourcing taxation
- Financial literacy activities
- Dividends on common
- Repayment of long term loan
- Proceeds from issuing stock
- Redemption of bonds
You are required to add all the purchasing activities linked with acquiring machinery and equipment on the cash flow sheet. Activities like purchase of equipment, proceeds from sale of equipment and purchase of long term investment is added in the sheet. Dividends received amount is also shown up in the sheet.