Identifying Operating Cash Flows

In financial reporting, the cash flow statement provides a detailed analysis of a company's cash inflows and outflows across various activities.

It categorizes cash flows into three main sections: operating, investing, and financing. This breakdown helps investors and analysts assess a company's liquidity and overall financial health. Understanding the components of each section is crucial for evaluating a company's performance.

Assume that XYZ Corp has reported the following items related to their cash flows:

• Cash received from customers: $500,000
• Cash paid to suppliers: $300,000
• Purchase of property and equipment: $200,000
• Proceeds from issuing debt: $150,000

Based on this information, which of the following cash flows will be classified as operating activities?