medium · Financial Accounting statement-of-cash-flows
A firm sells equipment with an original cost of $90,000 and accumulated depreciation of $65,000 for $30,000 cash.
How is this transaction reported in the Statement of Cash Flows?
- Investing: $5,000 gain inflow; Financing: $25,000 book value inflow
- Operating: $5,000 addition (Gain) to net income; Investing: $30,000 inflow
- Operating: entire $30,000 cash proceeds reported as inflow; Investing section shows $0
- Operating: $5,000 subtraction (Gain); Investing: $30,000 inflow (Sale proceeds)
Sign up free to see the explanation and track your rank →
More Financial Accounting statement-of-cash-flows practice
- A customer pays $200 to settle an outstanding Account Receiv… — How does this transaction
- In the Operating section of the Cash Flow Statement (indirect method), how are these items
- A firm using the indirect method for the Statement of Cash Flows reports Net Income of $50
- What is the Cash Flow from Operations (CFO) using the indirect method?
- Using the indirect method, what is the Net Cash from Operating Activities?
- Westwood Distribution reports Net Income of $6,574. If Depreciation Expense is $3,900 and
- Under ASC 842, a lessee enters into a 3-year lease with annual payments of $50,000 due at
- An entity enters into a 5-year lease for equipment with annual payments of $40,000 due at