Final answer:
The investing activity on the statement of cash flows is the cash received from the sale of property, plant, and equipment. Investing activities involve the capital used for purchasing and selling long-term assets, not daily operations or financing activities.
Step-by-step explanation:
The activity classified as an investing activity on the statement of cash flows is D. Cash received from the sale of property, plant, and equipment. Investing activities include transactions involving the acquisition and disposal of long-term assets and investments. This does not include cash received from the sale of goods and services or cash paid to suppliers for inventory, as those are considered operating activities. Similarly, cash paid to lenders for interest, although it may appear as part of the financing activities, it is actually often classified as an operating activity due to interest being considered an expense from operations.
It's important to differentiate these activities because they are indicative of a business's financial health and strategies. For instance, reinvesting a portion of its profits into the company can significantly contribute to sustaining and growing the business entity, as well as influencing the current account balance in the economic context.