Final answer:
Equity investments intended for short-term profit without significant investor influence are recorded in the investing section of the Statement of Cash Flows, reflecting cash changes from the purchase and sale of such investments.
Step-by-step explanation:
Cash flows related to equity investments for which the investor lacks significant influence and are intended for short-term profit are shown in the investing section of the Statement of Cash Flows. This section reflects the purchase and sale of long-term investments and other securities, including payments received from investment income such as dividends or interest.
More specifically, buying and selling equity investments would be recorded as cash outflows and inflows, respectively, in this portion of the cash flow statement. The classification is important for providing users of financial statements with information about the company's cash flows related to investment activities and assessing the entity's ability to generate cash from its core business operations.