Making a loan to another party is considered an investing activity on the statement of cash flows is true as loaning cash is a cash outflow for investing activities.
As the loans made and gathered (which includes the interest) are a part of a governmental application, the loan sports are mentioned as running sports, in place of making investment sports.
The coins inflows acquired through short-term bank loans and the coins outflows used to pay off the main amount of brief-term financial institution loans are mentioned within the financing activities section of the announcement of coins flows.
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