A company will from time to time need to generate external financing to expand its business, build new factories, launch a national marketing campaign etc. The cash for such major activities is usually not forthcoming from earnings and is usually financed by either the sale of debt or the issuing of equity. Cash flow from Financing activities will include this and other similar cash inflows. Cash outflow in this section includes debt payments (principal), stock repurchase etc.
From the Sources and Uses Fund report, the construction of the cash flow statement The Sources and Uses Fund report provides the launching pad (so to speak) for the preparation of the cash flow statement, allowing the person constructing the statement to concentrate solely on the sectioning process. Of course, before the cash flow statement can be prepared, additional information will be needed. Information will be needed from the income statement, as well as any other information (usually found in the notes to the accounts) that pertains to charges against/addition to income as well as changes to other line items on the balance sheet.