This is a question from becker. I am so confused.
it is said the company classifies the proceeds from the sale of trading securities as an operating cash outflow(? is there mistake with the question, isn't it an inflow), how to deal with gain on sale on trading securities under indirect method?
In the answer, Becker deduct the gain from the net income. But I don't think so, since sale of trading is considered an operating activities, so we don't need to deal with the gain from the net income. Only when the gain comes from the investing activities, we shall deduct gain from NI. Am I right?