Multiple Choice
Illinois Woodworking Company is preparing its statement of cash flows using the indirect method.During the year,Illinois Woodworking sold equipment for $5990 cash.The net book value of the asset was $4970.Which of the following statements is TRUE?
A) The gain on sale of $1020 is added back to net income in the operating activities section.
B) The book value of the asset sold is shown as a negative cash flow in the investing activities section.
C) The cash receipt of $5990 is shown as a positive cash flow in the investing activities section.
D) The gain on sale of $1020 is shown as a positive cash flow in the financing activities section.
Correct Answer:
Verified
Correct Answer:
Verified
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