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H3Ko H3Ko
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7 years ago
Kevin Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Kevin sold equipment for $5,990 cash. The net book value of the asset was $4,970. Which of the following statements is true?
A) The book value of the assets sold is shown as a negative cash flow in the investing activities section.
B) The gain on sale of $1,020 is shown as a positive cash flow in the financing activities section.
C) The cash receipt of $5,990 is shown as a positive cash flow in the investing activities section.
D) The gain on sale of $1,020 is added back to net income in the operating activities section.
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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7 years ago
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H3Ko Author
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#2
7 years ago
YES! Can't believe I got this one right. Appreciate the confirmation
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#3
3 years ago
thank you
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#4
3 years ago
thank you
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#5
3 years ago
thank you
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