Marvel Company sold land that cost $440,000 for $470,000 cash.Indicate whether each of the following statements is true or false regarding Marvel's statement of cash flows (SCF).
_____ a)If Marvel uses the direct method,there would be a $30,000 cash inflow in the operating section of the SCF.
_____ b)If Marvel uses the indirect method to prepare the statement of cash flows,the gain on the sale of the land would be added to net income in calculating the cash flows from operating activities.
_____ c)Marvel would report the event in the investing activities section of the SCF the same way whether it uses the direct method or the indirect method.
_____ d)Marvel would disclose the event as a noncash investing and financing activity.
_____ e)Marvel would report a $470,000 cash inflow in the investing section of the SCF.

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The Answer of Marvel Company sold land that cost $440,000 for $470,000 cash.Indicate whether each of the following statements is true or false regarding Marvel's statement of cash flows (SCF).
_____ a)If Marvel uses the direct method,there would be a $30,000 cash inflow in the operating section of the SCF.
_____ b)If Marvel uses the indirect method to prepare the statement of cash flows,the gain on the sale of the land would be added to net income in calculating the cash flows from operating activities.
_____ c)Marvel would report the event in the investing activities section of the SCF the same way whether it uses the direct method or the indirect method.
_____ d)Marvel would disclose the event as a noncash investing and financing activity.
_____ e)Marvel would report a $470,000 cash inflow in the investing section of the SCF.

Marvel Company Sold Land That Cost $440,000 for $470,000 Cash