Kevin Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Kevin sold equipment for $5,990 cash. The net book value of the asset was $4,970. Which of the following statements is true?
A) The gain on sale of $1,020 is added back to net income in the operating activities section.
B) The book value of the assets sold is shown as a negative cash flow in the investing activities section.
C) The cash receipt of $5,990 is shown as a positive cash flow in the investing activities section.
D) The gain on sale of $1,020 is shown as a positive cash flow in the financing activities section.
C
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