### Depreciation expense and gain on the sale of plant assets

##### Reference no: EM13216603

To arrive at net cash provided by operating activities, the statement of cash flows prepared by the indirect method starts with net income and then adds or deducts various items. In making this calculation, the following items are added to net income under the indirect method:

Patent amortization expense, increase in current asset account, and decease in current asset account

Depreciation expense, gain on the sale of plant assets, and increase in current liability account

Gain on the sale of plant asset, increate in current asset account, and decrease in current liability account

Depletion expense, loss on the sale of plant assets, and patent amortization expense

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