Sureteck Industries prepares its cash flow statement using the direct method.Sureteck sold a piece of equipment used in their operations with a book value of $7,000 at a gain of $2,500.The amount to be reported on the cash flow statement under investing activities is:
A) $2,500
B) $7,000
C) $9,500
D) $4,500

Question

Quizplus · Accepted Answer

The gain on sale of equipment is reported under investing activities as a cash inflow of $9,500 ($7,000 book value + $2,500 gain).

Sureteck Industries Prepares Its Cash Flow Statement Using the Direct