Final answer:
Repaying borrowings from a bank is considered a cash outflow from financing activities, whereas issuing common stock represents a cash inflow.
Step-by-step explanation:
When assessing cash outflows from financing activities, payments such as repaying borrowings from a bank are considered cash outflows. Financing activities are transactions involving long-term liabilities, owner's equity, and changes in the financial structure of the company. Repaying a loan results in a cash outflow as the firm uses its cash reserves to pay down its debts, impacting the firm's capital structure.
On the other hand, issuing common stock is an inflow of cash, as it involves receiving new capital from investors in exchange for ownership in the company. This action increases the firm's cash reserves, which can then be used for various purposes, including expansion and meeting financial obligations. It has implications on corporate control and shareholder analysis, as it dilutes existing ownership but does not require regular interest payments, unlike debt financing.