Cash inflows from operating activities primarily accrue from the major revenue producing activities (i,e., sale of goods and rendering of services) of the enterprise. Therefore, they generally result from the transactions and other events that enter into the determination of net profit or loss, Examples of cash flows from operating activities are as follows,
• Cash receipts from the sale of goods and till’ rendering of services.
• Cash receipts from royalties, fees, commissions, and other revenues.
• Cash payments to suppliers for goods and services.
• Cash payments to and on behalf of employees.
• Cash receipts and cash payments of an insurance enterprise for premiums and claims, annuities and other policy benefits.
• Cash payments or refunds of income taxes unless they can be specifically defined with financing and investing activities.
• Cash receipts and payments relating to futures contracts, forward contracts, option contracts, and swap contract,:ts when the contracts are held for dealing or trading purpose.