This section of the cash flow statement reports changes in balances of the long-term liability and stockholders’ equity accounts, such as:

• Notes Payable (generally due after one year)

• Bonds Payable

• Deferred Income Taxes

• Preferred Stock

• Paid-in Capital in Excess of Par-Preferred Stock

• Common Stock

• Paid-in Capital in Excess of Par-Common Stock

• Paid-in Capital from Treasury Stock

• Retained Earnings

• Treasury Stock

In short, financing activities involve the issuance and/or the repurchase of a company’s own bonds or stock. Dividend payments are also reported in this section.