QUESTION 23 A company receives $2,000 for selling used equipment that had a book value of $3,500. The company's statement of cash flows will report: O a. a $2,000 cash inflow in the Investing section only. O b. a $2,000 cash inflow in the Financing section and the add back to net income of a $1,500 loss in the Operating section. O c. a $2,000 cash inflow in the Financing section and the subtraction from net income of a $1,500 loss in the Operating section. Od. a $2,000 cash inflow in the Investing section and the add back to net income of a $1,500 loss in the Operating section.
QUESTION 23 A company receives $2,000 for selling used equipment that had a book value of $3,500. The company's statement of cash flows will report: O a. a $2,000 cash inflow in the Investing section only. O b. a $2,000 cash inflow in the Financing section and the add back to net income of a $1,500 loss in the Operating section. O c. a $2,000 cash inflow in the Financing section and the subtraction from net income of a $1,500 loss in the Operating section. Od. a $2,000 cash inflow in the Investing section and the add back to net income of a $1,500 loss in the Operating section.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 23
Transcribed Image Text:QUESTION 23
A company receives $2,000 for selling used equipment that had a book value of $3,500. The company's statement of cash flows will
report:
O a. a $2,000 cash inflow in the Investing section only.
O b. a $2,000 cash inflow in the Financing section and the add back to net income of a $1,500 loss in the Operating section.
O c. a $2,000 cash inflow in the Financing section and the subtraction from net income of a $1,500 loss in the Operating section.
O d. a $2,000 cash inflow in the Investing section and the add back to net income of a $1,500 loss in the Operating section.
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