Intermediate Accounting 5 The Statement of Cash Flows Cash Flows from Operating Activities Operating activities include all transactions and other events that are not investing and financing activities Operating activities include transactions involving acquiring, selling, and delivering goods for sale, as well as providing services Cash receipts from the sale Cash payments to of goods or services and suppliers for inventory collections of accounts and on account. for receivable are typical cash wages, and for taxes are inflows from operating examples of cash activities outflows from operating activitiesCash Flows from Operating Activities Operating activities include all transactions and other events that are not investing and financing activities. Operating activities include transactions involving acquiring, selling, and delivering goods for sale, as well as providing services. Cash receipts from the sale of goods or services and collections of accounts receivable are typical cash inflows from operating activities. Cash payments to suppliers for inventory and on account, for wages, and for taxes are examples of cash outflows from operating activities. Intermediate Accounting 5 The Statement of Cash Flows