On the Statement of Cash Flows Prepared by the Indirect

Multiple Choice

On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be:

A) deducted from net income in converting the net income reported on the income statement to cash flows from operating activities.
B) added to net income in converting the net income reported on the income statement to cash flows from operating activities.
C) added to cash received from the sale to determine cash flows from investing activities.
D) deducted from cash received from the sale to determine cash flows from investing activities.