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Illinois Woodworking Company is preparing its statement of cash flows using the indirect method. During...

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Accounting

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Illinois Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Illinois Woodworking sold equipment for $5,490 cash. The net book value of the asset was $4,970. Which of the following statements is true? A. The gain on sale of $520 is shown as a positive cash flow in the financing activities section. B. The gain on sale of $520 is added back to net income in the operating activities section. C. The book value of the asset sold is shown as a negative cash flow in the investing activities section. D. The cash receipt of $5,490 is shown as a positive cash flow in the investing activities

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