The correct answer is C. Cash flows from investing activities . Cash paid to acquire, build, or improve long-term fixed assets such as land, buildings, machinery, and equipment is classified as an investing cash outflow on the statement of cash flows. OpenStax explains that the investing section of the statement of cash flows relates to changes in long-term assets , which includes capital expenditures for property, plant, and equipment. FASB cash flow guidance also requires classifying cash receipts and payments as operating, investing, or financing based on the nature of the activity.

Option B is incorrect because operating activities relate to the core day-to-day revenue-producing operations of the company. Option D is incorrect because financing activities involve obtaining or repaying capital, such as borrowing, issuing stock, or paying dividends. Option A is not a standard reporting category under the statement of cash flows. Since buying or constructing long-term fixed assets represents investment in productive resources for future use, the correct classification is Cash flows from investing activities .