Cash Flows from Financing Activities: Evidence from the Automotive Industry

The statement of cash flows is among the key financial statements which companies should prepare according to the Generally Accepted Accounting Principles. In Turkey, the uniform accounting system accepts the cash flow statement as a supplementary financial report. On the other hand, publicly traded companies prefer the Turkish Accounting Standards in preparing their cash flow statements. Cash flows from financing activities form one of the major parts of this statement as the financial strategies of companies. The aim of this study is to analyze the cash flows from the financing activities of a sample company from 2011 to 2014 in the Turkish Automotive Industry and to show its related strategy. The company’s financing activities involve cash inflows and cash outflows as it is normally observed in the literature. In addition, the share of bank loans and dividends demonstrate the significance of debt and dividend policy with regard to financing activities.