Which type of cash flows is directly related to the production and sale of products or services?

The type of cash flows that is directly related to the production and sale of products or services is operating flows. Operating cash flows represent the cash that a company generates from its regular business operations—essentially, the core activities involving the production and sale of goods or services to customers.

This includes cash received from customers, cash paid to suppliers and employees, and other operating expenses. The ability to generate positive operating cash flows is critical for a business's sustainability and profitability, as it indicates that the company can generate sufficient revenue to cover its ongoing operational costs without relying on investment or financing activities.

Each of the other options represents different aspects of cash flow management. Investment flows relate to the cash used for the purchase or sale of physical assets, while financing flows involve cash transactions that raise capital, such as issuing stock or taking on debt. Net cash flows refer to the overall change in cash position and can include all types of cash flows, thus not specifically linking to the operating activities of production and sales.