1. Operating, Investing, Financing
Cash Flow Statement
Operating, Investing, Financing

2. Operating activities Direct Income statement on a cash basis logical
more required
Analysis of income statement and current assets/liabilities
Indirect
Reconciliation format
Less required
Less useful
Analysis of income statement and current assets/liabilities

3. Investing activities
Cash outflow from purchase of mostly long-term assets though includes short-term investments
Cash inflow from sale of mostly long-term assets though includes short-term investments
Analysis of balance sheet items and gains/losses from income statement

4. Financing activities
Cash inflow from common or preferred stock issuance
Cash inflow from borrowing funds
Cash outflow from repurchase of stock (treasury stock)
Cash outflow from repayment of debt
Cash outflow from payment of dividends
Analysis of balance sheet liabilities (mostly long-term) and stockholder’s equity

5. Noncash investing/financing
Footnote or schedule on cash flow statement
Includes transactions like land purchased with owner financing (immediate loan)
Makes the statement more useful and inclusive