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Short Ltd Received Cash of $400,000 from a Sale to Toronto

Question 23

Multiple Choice

Short Ltd. received cash of $400,000 from a sale to Toronto Glass and $450,000 from a sale of a used machine to Oshawa Fibres. Short Ltd. paid $35,000 interest on bonds it had sold to Bankers' Trust. How would these items appear on the cash flow statement?


A) Operating activities $400,000; investing activities $450,000; financing activities $35,000.
B) Operating activities $450,000; investing activities $35,000; financing activities $400,000.
C) Operating activities $35,000; investing activities $400,000; financing activities $450,000.
D) Operating activities $400,000; investing activities $450,000; financing activities $(35,000) .
E) Operating activities $(400,000) ; investing activities $(450,000) ; financing activities $(35,000) .

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