Operating activities

Operating activities are the operations of a company directly associated with furnishing its commodities and services to the marketplace. These are the enterprise’s focus trading pursuits, such as producing, allocating, retailing and marketing a good or service. Operating activities are the principal source of revenue and expenditure in a firm.

The operating activities on the cash flow statement comprise of various uses and sources cash from the company’s operational activities. In simple words, it shows how much money a company has generated from its products or services.

Few items that operating activities include are:

Vouchers from sales of goods and services

Interest returns

Payment of Income-tax 

Payment credited to suppliers for goods and services used for production

Payment to salaries and wages 

Rent payments

Additional operating expenses