On the Statement of Cash Flows Prepared Using the Indirect

question 158

Multiple Choice

On the statement of cash flows prepared using the indirect method, a $7,500 gain on the sale of fixed assets would be

• A) added to net income in converting the net income reported on the income statement to cash flows from operating activities
• B) deducted from net income in converting the net income reported on the income statement to cash flows from operating activities
• C) added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends
• D) deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

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