in sum, the cash flow statement mush accurately report the cash inflow (if any) associated with the sale or disposal of long-lived assets, not the difference between cash proceeds and net book value, which is reported in the income statement. because the cash inflow proceeds are reported in the investing activities section of the statement and the write-off of the carrying amount of the asset does not involve a simultaneous cash outflow, any gain or loss reported in the income statement must be reversed in developing the amount for cash flow operating activities