Cash flows from Operating activities include both inflows and outflows of cash from the external funding of a business.
Cash influx is the term used to describe the money that enters a firm. It might originate from sales, investments, or financing. A cash inflow is the opposite of a cash outflow since it involves money coming into a business. Operating cash flows concentrate on the cash inflows and outflows related to a company's fundamental business activities, such as the sale and purchase of inventories, the delivery of services, and the payment of salaries.
While the income statement covers income and expenses, the cash flow statement lists cash inflows and outflows. While an income statement demonstrates profitability, a cash flow statement demonstrates liquidity. Many forms of income also involve cash inflows. The selling of livestock and crops typically generates income.
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