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Chapter 9

3.12 Financing activities

Cash inflows may include:

 proceeds from the issue of shares and

 proceeds from the issue of loans/debentures

Cash outflows may include:

 repayments of loans/debentures and

 dividends paid

The proceeds from share issues will be calculated by looking at the movement on the
share capital and share premium accounts in the SOFP.

The proceeds/repayment of loans/debentures will be calculated by looking at the
movement on the loan/debenture accounts in the SOFP.

The dividend payment can either be found in the SOCIE or by looking at the
movement on the retained earnings account as follows:

Retained earnings
Dividend paid (Bal fig) X Bal b/d X
Bal c/d (SOFP) X Profit or loss for the year X

––– –––
X X
––– –––

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