Final answer:
A firm's net cash flow from operating activities includes cash received from sales, cash paid to suppliers and employees, and cash paid for operating expenses. This represents the cash generated or used by the firm's core business operations and provides insight into its financial health.
Step-by-step explanation:
A firm's net cash flow from operating activities includes:
- Cash received from sales of goods or services
- Cash paid to suppliers for goods or services
- Cash paid to employees for wages and salaries
- Cash paid for operating expenses, such as rent, utilities, and insurance
Net cash flow from operating activities represents the cash generated or used by a firm's core business operations. It provides insight into the company's ability to generate cash and its financial health.