For a firm using the indirect method,the gain on sale of equipment should be added back to net income to arrive at cash flow from operating activities.

Name: For a firm using the indirect method,the gain on sale of equipment should be added back to net income to arrive at cash flow from operating activities.
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Question

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In the indirect method, the gain on sale of equipment is subtracted from net income to arrive at cash flow from operating activities because it is a non-cash item that had increased net income.

For a Firm Using the Indirect Method,the Gain on Sale