Cannon Manufacturing Co.sold equipment that cost $18,000 for $6,000.A loss on sale of $1,000 was recorded.How is the Cash Flows from Investing Activities affected?

Question

Quizplus · Accepted Answer

The cash flows from investing activities are affected by the purchase and sale of long-term assets such as equipment. In this case, the sale of equipment generated a cash inflow of $6,000, which is the amount received from the buyer. The original cost of the equipment and the loss on sale are not relevant for the cash flow calculation. Therefore, the correct answer is B, which represents the amount of cash received from the sale.