Answer
Three major sections on a financial statement of cash flows are: Operating activities, investing activities, and financing activities.
Operating activities generate cash inflows and outflows related to revenue and expense transactions that affect net income.
Investing activities generate cash inflows and outflows related to acquiring or disposing of noncurrent assets such as property, plant, and equipment, long-term investments, and loans.
Financing activities generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company’s owners, such as selling or repurchasing shares of common stock and paying dividends.
Work Step by Step
As given above
