Albers Enterprises uses the direct method when preparing its statement of cash flows. Albers sold equipment with a book value of $51,000 at a gain of $7,000. 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 include the book value plus the gain, which is $51,000 + $7,000 = $58,000.

Albers Enterprises Uses the Direct Method When Preparing Its Statement