Exhibit 12-1 Ellie Inc.has the Following Cash Flows to Account For

Multiple Choice

Exhibit 12-1
Ellie Inc.has the following cash flows to account for:
(1) Cash receipts from the sale of long-term bonds.
(2) Cash receipts from the sale of equipment.
(3) Cash payments for income taxes.
(4) Cash receipts from the sale of stock.
(5) Cash payments for the purchase of a factory building.
-Refer to Exhibit 12-1.Which of these items would appear in the operating activities section of the statement of cash flows?

A) 1 & 4
B) 3 & 5
C) 2 & 5
D) 3
E) None of the answer choices is correct.