Slide16 - Cash Flows from Financing Activities Two general...

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Unformatted text preview: Cash Flows from Financing Activities - Two general rules apply for identifying financing activities: — Increases in cash (cash inflows) stem from increases in long-term liabilities or paid-in capital — Decreases in cash (cash outflows) stem from decreases in long-term liabilities or paid-in capital - Biwheels had two such transactions in January: — Transaction 1: Initial investment, $400,000 — Transaction 2: Loan from bank, $500,000 ...
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