Under the Indirect Method of preparing the Cash Flows Statement, a sale of land

Question

Under the Indirect Method of preparing the Cash Flows Statement, a sale of land with a cost of $19,000 for $20,000 cash would be shown as

A increase in cash of $20,000 from investing activities

Both b and c

                            a.            an increase in cash of $1,000 from operations                             b.            a decrease in cash of $1,000 from operations                             c.           

A increase in cash of $20,000 from investing activities

                            d.           

Both b and c

                            e.            an increase in cash of $20,000 from financing activities

Explanation / Answer

Hi,

Option D is correct.

Thanks.

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