Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $6,000. The net book value of the asset was $30,900. Which of the following statements describes the cash effect of the transaction?

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter14: Statement Of Cash Flows
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Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $6,000. The net book value of the asset was
$30,900. Which of the following statements describes the cash effect of the transaction?
negative cash flow of $24,900 for operating activities
positive cash flow of $24,900 from investing activities
negative cash flow of $24,900 for financing activities
positive cash flow of $36,900 from financing activities
Transcribed Image Text:Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $6,000. The net book value of the asset was $30,900. Which of the following statements describes the cash effect of the transaction? negative cash flow of $24,900 for operating activities positive cash flow of $24,900 from investing activities negative cash flow of $24,900 for financing activities positive cash flow of $36,900 from financing activities
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