On the statement of cash flows, a $7,500 gain on the sale of fixed assets would be
A) added to net income in converting the net income reported on the income statement to cash flows from operating activities
B) deducted from net income in converting the net income reported on the income statement to cash flows from operating activities
C) added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends
D) deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

Question

Quizplus · Accepted Answer

Gains on the sale of fixed assets are deducted from net income in the operating activities section because they are non-cash items that were included in net income.

On the Statement of Cash Flows, a $7,500 Gain on the Sale