Reporting Cash Flows The statement of cash flows reports a firm's major cash inflows and outflows for a period cash flows are reported by three types of activities. 1. Operating activities -transactions that affect net income 2. Investing activities transactions that affect noncurrent assets 3. Financing activities- transactions that affect equity and debt of the entity. c14-3C14 - 3 Reporting Cash Flows 1. Operating activities – transactions that affect net income. 2. Investing activities – transactions that affect noncurrent assets. 3. Financing activities – transactions that affect equity and debt of the entity. The statement of cash flows reports a firm’s major cash inflows and outflows for a period. Cash flows are reported by three types of activities