Why profit on sale of investment is not taken in a cash flow statement? Explain
Hi Riya,
Profit on sale on investment has two impacts on a Cash Flow Statement.
(a) Shown as a deduction under Operating Activity (being a non-operating income)
(b) Shown as cash inflows under Investing Activity (included in the sale proceeds)
Profit on sale on investment has two impacts on a Cash Flow Statement.
(a) Shown as a deduction under Operating Activity (being a non-operating income)
(b) Shown as cash inflows under Investing Activity (included in the sale proceeds)