Poole Industries prepares its cash flow statement using the direct method.Poole sold equipment with a book value of $7,000 at a gain of $2,500.The amount to be reported on the cash flow statement under operating activities is:
A) $2,500
B) $7,000
C) $9,500
D) This is not an operating activity.

Question

Quizplus · Accepted Answer

The sale of equipment is considered an investing activity, not an operating activity, on the cash flow statement. Therefore, it would not be reported under operating activities.

Poole Industries Prepares Its Cash Flow Statement Using the Direct