31 - out of A boxand company uses the indirect method for reporting cash flows...
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Accounting
31 - out of A boxand company uses the indirect method for reporting cash flows from operating activities. During an accounting period, plant which had cost OMR 50.000 some years ago was sold for OMR 6,000. The accumulated depreciation on this plant at the time of disposal was OMR 50,000. The effects of this transaction on the statement of cash blows are as follows: Operating activities: Add back loss on disposal OMR 4.000, vesting activities: Cash received on disposal of plant OMR6,000 Operating activities: Subtract loss on disposal OMR 4.000, Investing activities: Cash received on disposal of plant OMR 6,000 Operating activities. Add disposal proceeds OMR 6,000, Investing activities: Subtract loss on disposal of plant OMR 4,000 Operating activities Add back loss on disposal OMR 10,000, Investing activities Cinh received on disposal of plant OMR 6,000
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