Cash outflows arise from _____ assets, ________ liabilities, and ___________ stockholders' equity.
Cash outflows arise from increasing assets, decreasing liabilities, and decreasing stockholders' equity.
The company's uses (decreases) of cash result from:
Increasing assets (other than cash), for example, purchasing inventory, property, plant, and equipment; adding to accounts receivable (less cash coming in until the customers pay their bills).
Decreasing liabilities, for example, paying off accounts payable, borrowings, and other liabilities (pension payments, withholding taxes, other taxes).
Decreasing stockholders' equity, for example, paying dividends, repurchasing equity, or incurring losses.