The cash flow statement activities are classified as operating, investing and

financing activities.

The operating activities include the cash flow from day to day activities.

The investing activities include the cash flow from sale of purchase of investment
or fixed assets.

The financing activities include the cash flow from long term liabilities, issuing of
shares, dividend payment, etc.
Cash flow statement- classification

Transactions Activities
1 Payment of long term debt  Financing activities
2 Issuing 3-year unsecured notes  Financing activities
Collection of accounts
3 Operating activities
receivable
Issue of ordinary shares for
4 Not a cash flow
purchase of land
5 Writing off obsolete inventory Not a cash flow
Depositing cash on hand with
6 Not a cash flow
bank
7 Payment of employees’ wages Operating activities
Issuing ordinary shares for
8 Financing activities
cash
Payment of income taxes
9 Operating activities
payable
Purchase of equipment for
10 Investing activities
cash
11 Paying dividends Financing activities
Sale of real estate held as a
long-term investment
12 Investing activities