On the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would include a. gains or losses on fixed assets b. receipts from the issuance of capital stock c. receipts from the sale of investments d. payments for cash dividends

Question

Business

Brittany Monroe

14 December, 08:55

On the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would include a. gains or losses on fixed assets b. receipts from the issuance of capital stock c. receipts from the sale of investments d. payments for cash dividends

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Luz · Answer 1

a. gains or losses on fixed assets

Explanation:

Operating activities: This contains those transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.

These changes would be reflected in working capital. In addition, depreciation expenses are added to net income and losses on the sale of assets are added, while gains on the sale of assets are deducted