Chapter 16, Problem 3QC

To determine

Operating Activities: The first activity of a cash flow statement is operating activity. Operating activities are those that pertain to a company's core business activities, such as manufacturing, distributing, marketing and selling a product or service. Operating income is calculated by subtracting cost of sales research and development expenses; selling and marketing expenses, general and administrative expenses and depreciation and amortization expenses from operating revenue. Operating income excludes interest income or expenses.

To identify: Activities under operating activities