Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.

Question

Quizplus · Accepted Answer

The indirect method starts with net income and adjusts for items that are not cash. The sale of land would be reported in the investing activities section of the statement of cash flows, not financing activities. Therefore, the amount reported in financing activities would be $0.

Using the Indirect Method, If Land Costing $85,000 Was Sold