Prepare the Investing and Financing Activities Sections and Complete the Statement

Prepare the investing and financing activities sections and complete the statement of cash flows. The second step in the preparation of a statement of cash flows is to analyze the changes in certain non-current asset accounts and record them as investing activities, or disclose them as significant noncash transactions. The third step is to analyze the changes in non-current liability (and any related current portions) and equity accounts and record them as financing activities, or disclose them as significant noncash transactions. In addition to this, changes in the Dividends Payable account should be considered in determining the amount of dividends paid.The fourth and final step in the preparation of a statement of cash flows is to determine the overall net cash flow for the year and add it to the opening amount of cash (and cash equivalents) to determine the ending amount. This result should agree to the cash (and cash equivalents) reported on the statement of financial position.