Cash payments made to employees for wages and salaries; payments made to vendors for the purchase of merchandise; taxes paid to government agencies; payments for rent, utilities, and insurance will show up on the statement of cash flows under the category ofa. cash flows from financing activities. b. cash flows from investing activities. c. cash flows from operating activities. d. a and b above. e. b and c above.

Option C is correct because these expenses relates to the core operations of the organization and must appear in the operating activities, whereas in the financing activities their must only appear the finance raised and paid out during the accounting. In the investing activities we see the balances that are were invested to buy Non current assets for better future of the company.

All the expenses mentioned were the expenses that are necessary from purchase of raw material to the despatch of the the end product. The taxes are paid on the profits we will earn from the sale of these products so it relates to the operating activities and must be deducted from operating activities.