Item such as Increase in long-term debt and Increase in short-term borrowings decrease cash flows from financing activities? I thought they would increase the cash flow. Can anyone explain on this a bit.
if you increase long term borrowings, you increase money spent on long term bonds or other ways to finance your ventures, if you spend more money on financing, you will have less cash flow from financing since you spent that cash on financing, i think,., ill let u know more come july 29th
DonYuan Wrote: ------------------------------------------------------- > Item such as Increase in long-term debt and > Increase in short-term borrowings decrease cash > flows from financing activities? I thought they > would increase the cash flow. Can anyone explain > on this a bit. Increasing debt will increase your CFF (cash coming in). Why would you think otherwise?
I think you are confusing between a. Cash Flow (which is CFO + CFI + CFF) and b. CFO. alone Increase Long Term debt increases CFF Inflow. and Increase Total Cash Flow
Right, Increase long term debt does increase CFF inflow. Those brackets on the cash flow statements confused me.