Operating activities: Cash Inflow: (1) from sales of goods and service to customers (2) from receipt of interest or dividends on loans or investment Cash outflows: (1) to employees for wages (2) to suppliers for inventory (3) to others for expenses (4) to creditors for interest (5) to government for taxes

Investing activities: Cash Inflow: (1) From sale of property, plant, and equipment and other long-term assets (2) From sale of long-or short-term marketable securities (3) From collection of loan Cash outflow: (1) To purchase property, plant, and equipment and other long-term assets (2) To purchase long- or short-term marketable securities (3) to make loans

Financing activities: Cash Inflow: (1) from sale of preferred or common stock (2) From issuance of debt Cash outflow: (1) To reacquire preferred or common stock (2) To repay debt (3) to pay dividend.

====== Estimating uncollectible accounts expense ======

There are two common methods available for estimating uncollectible accounts expense for an accounting period: (1) the  percentage of net sales method and (2) the accounts receivable aging method.

Example: .Liberty Company estimates that its annual bad debts approximate 4% of their credit sales. Liberty had the following balances at year-end prior to recording adjusting entries:
credit sales                               $160,000
Accounts receivables                      30,000
Allowance for Doubtful accounts                            100(debit)
The bad expense (uncollectible accounts expense) = percentage times credit sales
$160,000 * 4% = $6400

The allowance for doubtful accounts = bad expense