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Operating Activities

Cash Generated by Daily Operations

Operating activities include the primary revenue-producing activities of a business. These transactions affect net income and generally involve current assets and current liabilities.

  • Cash collected from customers.
  • Cash paid to suppliers.
  • Cash paid to employees.
  • Cash paid for operating expenses.
  • Interest received.
  • Interest paid.
  • Income taxes paid.
Summary
Operating activities reflect cash generated from a company's core business operations.