Overview
Review Exhibit 7.15 and identify the second section of Wal-Mart’s cash flow state-ment—cash from financing activities. This section represents how much cash a company raised (or used) from additions (or reductions) to its debt and equity (the two major sources of funding).
Exhibit 7.15. Cash Flow From Financing Activities Tracks Changes in the Company’s Sources of Debt and Equity Financing
Source: Used with permission of Wal-Mart Inc.
In the lemonade stand example, this refers to how much cash was raised through debt (loan) and equity (your own funds).
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