Accounting / July 19, 2018 / Pearl Bailey
Cash flow from financing (CFF) activities is a category in a company’s cash flow statement that accounts for external activities that allow a firm to raise capital. In addition to raising capital, financing activities also include repaying investors, adding or changing loans, or issuing more stock. Cash flow from financing activities shows investors the company’s financial strength. A company that frequently turns to new debt or equity for cash, for example, could have problems if the capital markets become less liquid.
In most cases, the only way to determine the fair value of an ARO is to use an expected present value technique, where the probabilities of several possible outcomes are used. When constructing an expected present value of future cash flows, incorporate the following points into the calculation.
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