Question

Answer the following in brief :

What are the different cash inflows and cash outflows of operating activity?

Answer 1

1. Cash inflows of operating activity:

a. Receipts from the sale of goods or services
b. Receipts from the sale of debt or equity instruments in a trading portfolio
c. Interest received on loans

2. Cash outflows of operating activity:

a. Payments to suppliers for goods and services
b. Payments to employees or on behalf of employees
c. Interest payments
d. Taxes paid