Cash Flow Statement:
ABC Limited reflected the following items in the 20X5 financial statements:
Income Statement
Amortization expense, machinery $300,000
Amortization expense, patent 60,000
Loss on sale of machinery 25,000
Gain on sale of land 30,000
Balance sheet:
Decrease in land account $400,000
Increase in net patent account 65,000
Decrease in net machinery account 465,000
The only entry through the land account was a sale of land. The other accounts may reflect more than one transaction.
Question:
Assuming indirect method is used in operating activities section, list the items that would appear on the cash flow statement under which sections and state any assumptions.