What are the differences between cash from operating activities, cash from investing activities, and cash from...

What are the differences between cash from operating activities, cash from investing activities, and cash from financing activities

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Expert Solution

Cash flow from operating activities is a section of the cash flow statement that provides information regarding the cash-generating abilities of a company's core activities.

Examples of Cash flow from operating activities

Cash Receipts from Customers

Cash payments for Operating Expense

Cash payment to suplliers

Cash flow from investing activities is an item on the cash flow statement that reports changes resulting from amounts spent on investments in capital assets such as plant and equipment, investments.

Ex of Cash flow from Investing activities

Sale of invt

Purchase of PPE

Sale of PPE

Financing activities - A category in a company’s cash flow statement that accounts for external activities that allow a firm to raise capital and repay investors, such as issuing cash dividends, adding or changing loans or issuing more stock.

Ex of Cash flow from Financing activities

Issue of Stock

Issue of additional Paid in capital

Dividends Paid

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