Sources & Uses statement examines the changes in a balance sheet from one period to the next and then classifies changes in the balance sheet accounts as either sources of cash $($decreases in assets or increases in liabilities and equity are sources$)$ or uses of cash $($increases in assets or decreases in liabilities and equities are uses of cash$).$ The changes are then grouped into three areas:

Operating activities $($net income plus depreciation plus changes in working capital accounts$)$

Investing activities $($changes in long$-$term assets$)$

Financing activities $($changes in interest bearing short$-$term debts, long$-$term liabilities, and equity accounts other than retained earnings$)$

With some balance sheet accounts, the changes in the value of the account are split among the categories.