Impact of Transactions Involving Tax Liabilities on Statement of Cash Flows In the following list, select each item as operating, investing, financing, or not separately reported on the statement of cash flows. For items identified as operating, select whether the related amount would be added to or deducted from net income in determining the cash flows from operating activities. Item Type of Activity If in Operating Activities Section, Relationship to Net Income? Decrease in taxes payable Increase in deferred taxes