Southern Industries Corporation uses the direct method when preparing its statement of cash flows. Southern Industries sold equipment with a book value of $15,000 at a loss of $2,000. The amount to be reported on the statement of cash flows under "proceeds from the sale of plant assets" is:

Question

Quizplus · Accepted Answer

The proceeds from the sale of plant assets is the amount of cash received from the sale of the equipment, which is $15,000 - $2,000 = $13,000.

Southern Industries Corporation Uses the Direct Method When Preparing Its