Operating cash flow includes all cash generated by a company's main business activities. Investing cash flow includes all purchases of capital assets and investments in other business ventures. Financing cash flow includes all proceeds gained from issuing debt and equity as well as payments made by the company.
Answer and Explanation: Correct Answer: Option a. Payments for inventory, payments for salaries, cash received from the sale of goods.
Answer and Explanation: B) Investing in equipment worth $90,000 is not an example of financing cash flow. Financing refers to cash inflows and outflows that generate capital or pay for the generation of capital which defines the other three options.
The activities included in cash flow from investing actives are capital expenditures, lending money, and the sale of investment securities. Along with this, expenditures in property, plant, and equipment fall within this category as they are a long-term investment.
Examples of cash inflows from operating activities are cash receipts from the sale of goods and services, and receipts from the collection of accounts receivable.
The cash flow from operations is the first section of the cash flow statement and includes money that goes into and out of a company. Net income, adjustments to net income, and changes to working capital are included in operating cash flows.
Cash flow from operating activities does not include long-term capital expenditures or investment revenue and expense. CFO focuses only on the core business, and is also known as operating cash flow (OCF) or net cash from operating activities.
Which of the following is an example of cash flow from Operating Activities? (D) Sale of investment by non-fmancial enterprise.
Q.Which among the following is not an example of cash flow from operatingactivities ?B.cash payments of income taxesC.cash payments to employeesD.cash receipts from disposal of fixed assetsAnswer» d. cash receipts from disposal of fixed assets1 more row
Operating activities are the daily activities of a company involved in producing and selling its product, generating revenues, as well as general administrative and maintenance activities. Key operating activities for a company include manufacturing, sales, advertising, and marketing activities.
Cash Inflows from operating activities (operating cash flows) include:Cash sales to customers.Collection of accounts receivables from credit sales.Cash dividends received from investments of other companies.Interest received on investments in equity and debt securities.