Identify the Cash Outflow from Financing Activity
Identify the Cash Outflow from Financing Activity
Solution
✅ Correct Option: 4
Increase in share capital and proceeds from long term borrowings are cash inflows from financing activities. Dividend received is an inflow (typically from investing activity for non-financial companies). Repayment of bank overdraft involves payment of cash to settle borrowings, hence it is a cash outflow from financing activities.
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