Operating Activities Examples

Sales of goods/services

Operating inflow (cash received from customers)

Interest revenue

Operating inflow (Cash received from lending money)

Dividends received

Operating inflow (cash received from investments)

Cash paid to suppliers

Operating outflow (cash paid for inventory)

Cash paid to employees

Operating outflow (cash paid for wages/salaries)

Taxes paid

Operating outflow (cash paid to government)

Interest Paid

Operating Outflow (cash paid to lenders)

Accounts Receivable increase

Operating outflow (cash decreases —> sales on credit)

Accounts Receivable Decrease

Operating inflow (cash increases —> collecting cash from customers)

Accounts Payable increases

Operating inflow (cash increases —> expense not yet paid)

Accounts Payable Decrease

Operating outflow (cash decreases —> paying suppliers)

Depreciation expense

Operating inflow adjustment (noncash add-back)

Gain on sale

Operating outflow adjustment (subtract from net income)

Loss on Sale

Operating inflow adjustment (add back to net income)

Amortization Expense

Operating Inflow adjustment (noncash expense added back to net income)