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Nahime Tanuz
on Nov 18, 2024

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Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of an entity, typically involving the inflow of cash from investors or banks.

Indirect Method

A technique used in the statement of cash flows to adjust net income for the effects of non-cash transactions and changes in working capital to determine cash flow from operating activities.

  • Understand the treatment of noncash investing and financing activities in the statement of cash flows.
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KM
Kamillah MonroqueNov 20, 2024
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