Gail doesn't understand why losses are added and gains are deducted from profit when calculating cash provided

Question:

Gail doesn't understand why losses are added and gains are deducted from profit when calculating cash provided (used) by operating activities in the indirect method. She argues that losses must be deducted and gains added as they are on the income statement. Explain to Gail why she is wrong.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

Question Posted: