GRI Performance Enterprises Uses the Direct Method When Preparing Its

Multiple Choice

GRI Performance Enterprises uses the direct method when preparing its statement of cash flows. GRI Performance sold equipment with a carrying amount of $8,000 at a gain of $2,500. The
Amount to be reported on the statement of cash flows in the operating activities section is:

A) $2,500
B) ($2,500)
C) $10,500
D) $0