Cash paid in the acquisition of land, buildings, or equipment; loans to other companies; and the proceeds from the sale of land, buildings, or equipment will show up on the cash flow statement under the category of

cash flows from financing activities.

cash flows from investing activities.

cash flows from operating activities.

cash flows from financing activities and cash flows from investing activities.

2.

The income statement shows earnings before taxes, which is equal to

		earnings before taxes minus taxes.
		gross revenues minus returns and allowances.
		net sales minus cost of goods sold.
		operating income minus interest.
		operating income minus operating expenses.

cash flows from investing activities and cash flows from operating activities.