On the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would includea. payments for cash dividendsb. gains or losses on fixed assetsc. receipts from the issuance of capital stockd. receipts from the sale of investments

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Business

Kamora Lynn

14 October, 16:27

On the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would includea. payments for cash dividendsb. gains or losses on fixed assetsc. receipts from the issuance of capital stockd. receipts from the sale of investments

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Rachael Trevino · Answer 1

b. gains or losses on fixed assets

Explanation:

Operating activities: It includes those transactions that affect the after-net income working capital. It would deduct the increase in current assets and a decrease in current liabilities, while adding the decrease in current assets and an increase in current liabilities.

It would manage those adjustments in working capital. In addition, the depreciation costs are added to the net income and the loss on the sale of assets is added, while the profit on the sale of assets is deducted