Report and analyze cash flows from financing activities.

- The cash flows from the financing activities section reports the net cash flow related to the borrowing and repayment of the principal amount of long-term debt, the sale of common or preferred shares, and the payment of dividends.

- The preparation of the financing activities section of a statement of cash flows involves a careful analysis of the information in the financial statements as well as a recreation of the journal entries that describe the activities that took place during a period.