Amr Fahmy

according to the indirect method of cash flow statement ,first we claissfy the accounts to three categories, operating activities, investing activites, financing activites.
we start with calcaulating the net cash flow from operating activities , we put our net income and then add or deduct amounts, in the case of your question , if we sell an asset with capital gain we deduct this gain from operating section and put the total cash proceeds at the investing section as a sale of asset, also we add depreciation at the operting section because it is not a cash expense.