Martin Ceramics Company sold equipment for cash. The income statement shows a gain on the sale of $1,020. The net book value of the asset was $3,810. Which of the following statements describes the cash effect of the transaction?
A) negative cash flow of $4,830 for financing activities
B) negative cash flow of $2,790 for operating activities
C) positive cash flow of $4,830 from investing activities
D) positive cash flow of $2,790 from investing activities
C .C)
Net Book Value of Equipment $3,810
Add: Gain on Sale 1,020
Cash Inflow from Investing Activity $4,830
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