The statement of cash flows explains the change in a company's cash
(and cash equivalents) during the time interval indicated in the heading
of the statement. The change is divided into three parts: (1) operating
activities, (2) investing activities, and (3) financing activities.
The operating activities section explains how a company's cash (and cash equivalents) have changed due to operations. Investing activities refer to amounts spent or received in transactions involving long-term assets. The financing activities
section reports such things as cash received through the issuance of
long-term debt, the issuance of stock, or money spent to retire
long-term liabilities. (You can learn more about the statement of cash
flows at Explanation of Cash Flow Statement.)