In a business, the cash outflows may be a term that is thrown around. It refers to the amount of money that is taken out of the business. Usually, this is done to pay for products to sell or raw materials to make the products with.
It could also include salaries that have to be paid to the workers, supplies, maintenance as well as dividends that have to be paid to the stockholders. The cash outflows refers to everything monetarily that is spent or released from the business.
When cash outflows is used for the payment of cash dividends, this means that cash flows from financing activities. Financing means that this refers to money. When you start a business, you may not be aware how much money it takes to run a business.
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