- Cash Dividends Paid = – Dividends + increase in dividends payable = -17,000 + $10,000 = -$7,000
Now let us take an example of an organization and see how detailed cash flow from financing activities can help us in determining information about the company.
It is indicative of the kind of financing activity which has been undertaken by the company in a particular area. In FY15, Apple incorporation spent $20,484 million in financing activities. Few observations from the above cash flow from financing activity parts are:
- The company has been a steady dividend payer. In the last three years company has been paying a dividend of over $11000 million each year. Investors who don’t wait for capital appreciationCapital AppreciationCapital appreciation refers to an increase in the market value of assets relative to their purchase price over a specified time period. Stocks, land, buildings, fixed assets, and other types of owned property are examples of assets.read more can earn money from the steady dividend paid by the company every year.
- One more important factor to see is the repurchase of shares.