Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

The statement of cash flows involves reporting cash receipts and cash payments organized into three categories: operating, financing, and investing. Noncash financing and investing items are reported in a note or in a separate schedule with the statement. The statement reconciles the beginning and ending cash and cash equivalents balances and explains the amount of net increase or decrease in this balance.