Final answer:
Operating activities include cash inflows from revenue and outflows for operational expenses like income taxes and wages, but do not include cash inflows from the sale of equipment, which is classified as an investing activity.
Step-by-step explanation:
The student's question pertains to understanding which activities fall under the category of operating activities in the context of cash flow. Specifically, operating activities include cash inflows from revenues, such as money received from customers for products or services and cash outflows related to operational expenses, like payments for income taxes and wages.
However, the sale of fixed assets, such as equipment, is considered an investing activity, not an operating activity. Therefore, cash inflows from the sale of equipment do not count as operating activities because the primary purposes of these transactions are related to the investment aspect of the business, rather than its core operational functions.