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A useful theory
Operating Activities
The day-to-day functions of a business related to producing and selling its goods or services, which are reflected in its cash flow.
Investing Activity
Transactions and events that involve the purchase and/or sale of long-term assets and other investments, as shown in a company’s cash flow statement.
Income Statement
A financial document that reports a company's revenues, expenses, and net profit or loss over a specific period of time.
Cash Flows
The total amount of money being transferred into and out of a business, especially affecting its liquidity.
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