Sustainability Enterprises uses the direct method when preparing its statement of cash flows. Sustainability sold equipment with a carrying amount of $22,000 at a gain of $5,000. The amount
To be reported on the statement of cash flows under "proceeds from the sale of capital assets" is:

Question

Quizplus · Accepted Answer

The proceeds from the sale of capital assets are calculated by adding the gain of $5,000 to the carrying amount of $22,000, resulting in $27,000.

Sustainability Enterprises Uses the Direct Method When Preparing Its Statement