 CASH FLOWS FROM OPERATING ACTIVITIES INCLUDE:
Cash Receipts
Cash Payments
Collection from customers for sale of goods
and services
Payments to suppliers of merchandise and
services, including payments to employees
Interest and Dividends received
Payments of Interest & income taxes
Other receipts from operations;
Other expenditure relating to operations;
For example, proceeds from settlement of
litigation
For example, payments in settlement of
litigation.
Net income is typically the first line item in the operating activities section of the
cash flow statement. This value, which measures a business's profitability, is derived
directly from the net income shown in the company's income statement for the
corresponding period.
The cash flow statement must then reconcile net income to net cash flows by adding
back non-cash expenses such as depreciation and amortization. Similar adjustments
are made for non-cash expenses or income such as share-based compensation or
unrealized gains from foreign currency translation.
The cash flows from the operating activities section also reflect changes in working
capital. A positive change in assets from one period to the next is recorded as a cash
outflow, while a positive change in liabilities is recorded as a cash inflow.
Inventories, accounts receivable, tax assets, accrued revenue, and deferred revenue
are common examples of assets for which a change in value will be reflected in cash
flow from operating activities.
Accounts payable, tax liabilities, and accrued expenses are common examples of
liabilities for which a change in value is reflected in cash flow from operations.
 CASH FLOW FROM INVESTING ACTIVITIES INCLUDE:
Cash Receipts
Cash Payments
Cash proceeds from selling investments and
plant and intangible assets
Payments to acquire investments and plant
and intangible assets
Cash proceeds from collecting principal
amounts on loans
Amount advanced to borrowers
cash paid in mergers and acquisitions,
purchase of marketable securities, and
proceeds from the sale of assets
 CASH FLOW FROM FINANCING ACTIVITIES INCLUDE:
Cash Receipts
Cash Payments
Proceeds from both short-term and longterm borrowing
Repayment of amounts borrowed (excluding
interest payments).
Cash received from owners (for example,
from issuing stock)
Payments to owners, such as cash dividends.
Proceeds from the issuance of stock, proceeds from the issuance of debt, dividends paid, cash
paid to repurchase common stock, and cash paid to retire debt are all entries that should be
included in the cash flow from financing activities section.