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The operating activities section of an indirect method statement of cash flows includes:

a) Cash received from customers
b) Changes in current asset balances
c) Cash paid for inventory
d) Cash paid for operating expenses

1 Answer

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Final answer:

The operating activities section includes cash received from customers, changes in current asset balances, cash paid for inventory, and cash paid for operating expenses.

Step-by-step explanation:

The operating activities section of an indirect method statement of cash flows includes cash received from customers, changes in current asset balances, cash paid for inventory, and cash paid for operating expenses.

An example of cash received from customers is when a retail store receives payments from its customers for the goods or services they have purchased.

An example of changes in current asset balances is when a company sells some of its inventory, resulting in a decrease in the inventory balance.

An example of cash paid for inventory is when a grocery store pays its suppliers for the inventory it purchases to stock its shelves.

An example of cash paid for operating expenses is when a company pays its employees' salaries or rents a property for its operations.

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