On the Statement of Cash Flows Prepared by the Indirect

question 82

Multiple Choice

On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be:

• A) deducted from net income in converting the net income reported on the income statement to cash flows from operating activities.
• B) added to net income in converting the net income reported on the income statement to cash flows from operating activities.
• C) added to cash received from the sale to determine cash flows from investing activities.
• D) deducted from cash received from the sale to determine cash flows from investing activities.

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