Qus no. 4 of the quiz on Cash Flow Statement Basics



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Need explaination on the answer as to why Cash flow from Financing decreased by 180$

1 Answer(s)


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First cash flow from financing will increase by $200mn due to the loan (cash inflow), then in the same period cash flow from financing will decrease by $20mn due to the interest payable (cash outflow).

Hence net of $200mn inflow - $20mn outflow is $180mn.

Then since money is being spend on the building cash flow from investing will decrease by $200mn.

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