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Assets with book value of $ 14K sold at gain of $ 2K then proceed from sale of asset in cash flow statement will be A. $ 16K B. $ 14K C. $12K

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Question added by Jafar Hussain Bhalam , Assistant Finance Manager , Giesecke & Devrient FZE
Date Posted: 2015/04/28
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by Deleted user

The cash flow statement will reflect a cash inflow of $14K as the $2K profit on sale is an accounting paper transaction, a non-cash transaction, which will be deducted Net Income Before Taxes, under "Cash Flows from Operating Activities" same as depreciation adjustment. 

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