A statement of cash flows classifies cash receipts and cash payments into what three categories of activity? For each category of activity, share two specific examples of both cash receipts and cash payments based on two different business scenarios of your choosing. The business scenarios you choose can be based on real or fictional companies. For example, if you chose Uber and the fictional MarksABunch Art Supplies company, you would share six examples of cash receipts and cash payments per company, each broken out into one of the three different categories of activity presented in a statement of cash flows.

A statement of Cash flows classifies the cash receipts and the cash payments in the following three categories

1. Cash flow from Operating Activities- These are the primary activities that the business undertakes to generate revenue and to earn profit.

2. Cash flow from Investing activities- Investing activities relate to acquisition and/or sale of long term capital assets and investments.

3. Cash flow from Financing activities- Financing activities relate to increase and/or decrease in company's long term debt or equity and their related payments like dividend and interest.

Examples of Cash flow

[Note- I have taken 2 organizations- Uber and Capital First. Capital First is in the business of providing loans to customers, so giving and receiving loans from customers will NOT be Financing activity]

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