Sustainability Enterprises uses the direct method when preparing its statement of cash flows.Sustainability sold equipment with a book value of $22,000 at a gain of $5,000.The amount to be reported on the statement of cash flows under "proceeds from the sale of capital assets" is:
A) $27,000
B) $22,000
C) $17,000
D) $5,000

Question

Quizplus · Accepted Answer

The proceeds from the sale of capital assets include the book value plus the gain, which totals $27,000 ($22,000 + $5,000).

Sustainability Enterprises Uses the Direct Method When Preparing Its Statement