On the statement of cashflows, a $7,500 gain on the sale of fixed assets would b

ID: 2480674 • Letter: O

Question

On the statement of cashflows, a $7,500 gain on the sale of fixed assets would be

a. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities

b. deducted form dividends declared in converting the dividends declared to the cash flows from financig activites related to dividends

c. added to dividends declared in converting the dividends declared to the cash flows from finacncing activites related to dividends

d.added to net income in converting the net income reported on the income statement to cash flows from operating activites.

On the statement of cashflows, a $7,500 gain on the sale of fixed assets would be

a. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities

This is because Gain is deducted from net income and the sale value is shown in cash inflow from investing activity.

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