Operating activities: The inflows and outflows of the cash due to main business activities of the company are reported in the operating activities of the Cash flow statement.
The Cash flows from operating activities shall be net cash inflows received from the customers irrespective of actual amount of services provided.
The cash payment for supplies of material, payment of utilities expenses, payment of salaries and payment of rent are taken as outflows from operating activities.Calculate the cash flows generated from operating activities are as under:
Hence, the cash flows generated from operating activities is
$3,400