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nvesting activities include buying and selling assets like property and equipment, lending money to others and collecting the principal, and buying/selling investment securities. This section of the statement is associated with the Long-Term Assets section of the balance sheet.
Financing Activities

Financing activities include borrowing from creditors and repaying loans, issuing and repurchasing stock, and collecting money from owners/invenstors, and payment of cash dividends. This section of the statement is associated with the Long-Term Liabilities and Owners '/Stockholders ' Equity from the Balance Sheet.

I 'm not going to try to explain how to prepare or analyze the cash flow statement other than to say that if you have the records of all the cash transactions, then the preparation can be done using the simple method of categorizing the receipts and payments into the three categories listed above. The indirect method can be used to create the statement of cash flows from the information in the balance sheet and income statement, but I 'll leave that explanation for the textbooks. For more information, see the references below.
References:

Financial Accounting: Reporting and Analysis by M.A. Diamond, E. K. Slice, and J.D. Slice., 2000. Cash Flow Statement at wikipedia.org

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References: Financial Accounting: Reporting and Analysis by M.A. Diamond, E. K. Slice, and J.D. Slice., 2000. Cash Flow Statement at wikipedia.org Need Cash Flow Integrated with Other Financial Statements? ModelSheetSoft.com has developed a new technology that lets you customize financial statements in minutes by simply completing an online form. You can then download the spreadsheet designed to your specifications. Your Excel workbook will include an integrated income statement, balance sheet, cash flow statement, financial ratios, operating details, and more. Customize your Financial Plan! After you 've tried it, contact me and let me know what you think of their system. Looking for Powerful Cash Flow Analysis? ModelSheetSoft.com also has a template specifically for cash flow analysis. The cash flow analysis template includes a cash flow statement, receipt and payment accounts with aging reports, and employee expense databases. Customize your Cash Flow Analysis!
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