A company receives $3,000 from customers. Which section of a cash flow statement would include this transaction

Cash flow from operating activities

Explanation:

Cash flows from operating activities of cash flow statement show the various sources and uses of cash from ongoing regular business actvitieis of a company in a particular period.

Items that appear under the cash flows from operating activities normally include net income from the income statement, adjustments made to the net income, and changes in working capital.

One of the component of working capital is account receivables of a company which shows the amount owed to the company in the short term. The $3,000 received by a company from customers is an indication that $3,000 of the amount owed to the company has been paid. Therefore, the account receivable will be reduced by the $3,000 and the Cash flows from operating activities will increase by $3,000.

Therefore, the $3,000 received from customers will appear under the cash flow from operating activities section of a cash flow statement.

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