CFO indirect method | AnalystForum - AnalystForum | CFA Exam, CAIA Exam, FRM Exam Forums

Under the indirect method, NI is reconciled for all non-operating activities, non-cash expenses and changes in working capital items (to obtain CFO). The loss on the sale of equipment is not an operating expense, so it needs to be added back to net income

www.analystforum.com