Using the Indirect Method,the Increase in Accumulated Depreciation Is Added

Using the indirect method,the increase in accumulated depreciation is added to net income in the operating section.The increase in accumulated depreciation could be due to a combination of depreciation expense and sales of property,plant,and equipment.Depreciation expense would be added to net income in the operating section.Sales of property,plant and equipment would be reported as a cash inflow in the investing section.