Question: When an asset is sold at a gain why is
When an asset is sold at a gain, why is the gain not reported as a cash inflow from operating activities?
Answer to relevant QuestionsAre ordinary losses and extraordinary losses treated alike in preparing a statement of cash flows? Explain.Compare the manner in which investing activities are reported on a statement of cash flows prepared by the direct method and by the indirect method.Refer to the situation described in BE 21-5. What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2011, if it uses the indirect method?Shown below in T-account format are the beginning and ending balances ($ in millions) of both inventory and accounts payable.Required:1. Use a T-account analysis to determine the amount of cash paid to suppliers of ...Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2011. The bonds mature in 2021 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is ...
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