It depends on the underlying fixed asset’s carrying value and the sales proceeds received for the transaction. If the sale proceeds exceed the asset’s carrying value, it generates income for the company. These are tangible assets that help companies generate revenues and run the business. These assets also come with substantial costs and require companies […]
Month: June 2022
17 2: Direct and Indirect Methods for Preparing a Statement of Cash Flows Business LibreTexts17 2: Direct and Indirect Methods for Preparing a Statement of Cash Flows Business LibreTexts
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Gains and/or losses on the disposal of long-term assets are included in the calculation of net income, but cash obtained from disposing of long-term assets is a cash flow from an investing activity. Because the disposition gain or loss is not related to normal operations, the adjustment needed to arrive at cash flow from operating […]
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