Wize University Introduction to Financial Accounting Textbook > The Cash Flow Statement
Financing Activities Section
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Financing Activities
The financing activities section lists the cash transactions related to long-term liabilities and equity. These are the activities that the company underwent in order to raise money to finance the growth of the business.
Borrowings and Long-term Debt
- Repayments that were made in cash.
- New debt that was received in cash.
Shares
- Cash received in exchange for shares
- Cash spent to repurchase shares
Dividends
- Cash paid in dividends.
What it looks like
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Example: Financing Activities
The following financial statements are available for Wizedemy Inc. for the years ended June 30th, 2024 and 2025.
Additional Information
- During 2025, the company sold old equipment with an original cost of $6,000 and accumulated depreciation of $4,200.
- During 2025, the company sold one of its long-term investments that had originally cost $1,500.
Prepare in proper form the financing activities section of the statement of cash flows.
Mark Yourself Question
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Practice: Financing Activities
The following financial statements are available for KG Corp. for the year ended December 31st, 2020:
Additional Information
- Purchased new equipment for $700,000, paying 80% in cash and issuing common shares for the balance.
- Sold equipment for cash.
- Sold long-term investments for $48,000 in cash.
Prepare in proper form the financing activities section of the statement of cash flows.