what is the difference between the two question and how to know if it is a gain or loss?

Based on this income statement for Company Y for the year ending December 31, 2014, what Based on this income statement for Company Y for the year ending December 31, 2014, what adjustment would need to be made to Net Income to account for gain or loss in calculating cash flow adjustment would need to be made to Net Income to account for gain or loss in calculating cash flow from Operating Activities using the indirect method? from Operating Activities using the indirect method? COMPANY Y COMPANY Y INCOME STATEMENT INCOME STATEMENT For the Your Ending 12/31/14 For the Your Ending 12/31/14 Net Sales $ 600,000 Net Sales $ 600,000 Cost of Sales 400,000 Cost of Sales 400,000 GROSS PROFIT 200,000 GROSS PROFIT 200,000 Operating Expenses Operating Expo Research and Development 50,000 Research and Development 50,000 Marketing and Sales Expenses 35,000 Marketing and Sales Expenses 35,000 General and Administrative Expense 15,000 General and Administr 15,000 TOTAL OPERATING EXPENSES 100,000 TOTAL OPERATING EXPENSES 100,000 OPERATING INCOME 100,000 OPERATING INCOME 100,000 Gain/(Loss) on sale of Equipment (12,000) Gain/(Loss) on sale of Equipment (12,000) Other Income / (Expense) Net 20,000 Other Income / (Expense) Net 20,000 INCOME BEFORE TAXES 108,000 INCOME BEFORE TAXES 108,000 Income Tax Expense 32,400 Income Tax Expense 32,400 NET INCOME 75,600 NET INCOME $ 75,600 Select the appropriate adjustment to the statement of cash flows from the options below. Select the appropriate adjustment to the statement of cash flows from the options below. O Increase by $12,000 V Increase by $12,000 V Decrease by $12,000 X Decrease by $12,000 X