Which of the following is NOT added back to net income to obtain cash flow from operations?
A) Depreciation
B) Gain on sale of investment
C) Decrease in accounts receivable
D) Increase in accounts payable

Question

Quizplus · Accepted Answer

Gain on sale of investment is not added back to net income to obtain cash flow from operations. Depreciation is added back because it is a non-cash expense, while decreases in accounts receivable and increases in accounts payable represent cash inflows and outflows, respectively, and are also added back.

Which of the Following Is NOT Added Back to Net